What changed
RBI has repealed Master Direction – Reserve Bank of India (Relief Measures by Banks in Areas affected by Natural Calamities) Directions 2018 – SCBs dated October 17, 2018. The Directions are replaced by four amendment directions issued on April 29, 2026, effective from July 1, 2026: Reserve Bank of India (Commercial Banks – Resolution of Stressed Assets) Second Amendment Directions, 2026; Reserve Bank of India (Commercial Banks – Income Recognition, Asset Classification and Provisioning) Amendment Directions, 2026; Reserve Bank of India (Commercial Banks – Responsible Business Conduct) Directions, Amendment Directions, 2026; Reserve Bank of India (Commercial Banks – Credit Risk Management) Third Amendment Directions, 2026.
What it means for you
The repeal of Directions 2018 and replacement with four amendment directions means banks must comply with these new directions effective July 1, 2026, which cover stressed assets, income recognition, responsible business conduct, and credit risk management in areas affected by natural calamities.
What you must do
- Review and comply with the four new amendment directions issued on April 29, 2026, effective from July 1, 2026.
- Ensure that all approvals or acknowledgments granted under the repealed Directions are deemed as governed by the new Directions.
- Continue to govern any action taken or initiated under the repealed Directions by the provisions thereof.
Who it affects
Scheduled Commercial Banks (SCBs), Banks in areas affected by natural calamities, Customers of banks in areas affected by natural calamities
What is the effective date of the new Directions?
The new Directions will be effective from July 1, 2026.
Will the repeal of Directions 2018 affect any existing approvals or acknowledgments?
No, all approvals or acknowledgments granted under the repealed Directions will be deemed as governed by the new Directions.
What will happen to any investigations, legal proceedings, or remedies initiated under the repealed Directions?
Any such investigations, legal proceedings, or remedies may be instituted, continued, or enforced as if the Directions had not been repealed.