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The Economic Times
The Economic Times
Business

RBI bars banks, NBFCs from selling acquired stressed assets back to defaulting borrowers, related parties

RBI India

Mumbai (Maharashtra) [India]: The Reserve Bank of India (RBI) has issued final prudential norms for banks, small finance banks (SFBs) and non-banking financial companies (NBFCs), prohibiting them from selling specified non-financial assets (SNFAs) acquired during the resolution of stressed loans back to the defaulting borrower or its related parties.

The RBI issued the amendments under the Resolution of Stressed Assets Directions, 2025 for commercial banks, small finance banks and NBFCs. The new norms will come into effect from October 1, 2026.

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