The Reserve Bank of India issued the Reserve Bank of India (Commercial Banks – Asset Liability Management) Amendment Directions, 2026, modifying the existing 2025 framework. The amendment is introduced pursuant to the issuance of the updated Asset Classification, Provisioning and Income Recognition Directions, 2026, and is made under powers conferred by Section 35A of the Banking Regulation Act, 1949. The key change lies in the modification of the Explanation to paragraph 237(5), which now mandates that classification of loans shall be governed by the 2026 Directions instead of the earlier framework. This ensures alignment between asset liability management norms and the revised asset classification and provisioning regime. The amendment is stated to be in public interest and aims to maintain regulatory consistency across banking norms. The revised provision will come into effect from April 1, 2027, ensuring a synchronized transition to the updated regulatory framework.
Reserve Bank of India
RBI/2026-27/30
DOR.STR.REC.12/13-10-001/2026-27 | Dated: April 27, 2026
Reserve Bank of India (Commercial Banks – Asset Liability Management) – Amendment Directions, 2026
Please refer to Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025 (hereinafter referred to as ‘the Directions’).
2. Consequent to the issuance of Reserve Bank of India (Commercial Banks – Asset Classification, Provisioning and Income Recognition) Directions, 2026 and in exercise of the powers conferred by the section 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.
3. The Amendment Directions modify Explanation to paragraph 237(5) as below:
“Explanation: The classification of loans shall be as per Reserve Bank of India (Commercial Banks – Asset Classification, Provisioning and Income Recognition) Directions, 2026.”
4. The above amendments shall come into force from April 01, 2027.
(Vaibhav Chaturvedi)
Chief General Manager
