{"id":5697,"date":"2026-05-03T16:55:47","date_gmt":"2026-05-03T16:55:47","guid":{"rendered":"https:\/\/bhatiabhola.com\/?p=5697"},"modified":"2026-05-03T16:55:49","modified_gmt":"2026-05-03T16:55:49","slug":"rbi-directions-398-2026-dated-27-04-2026-commercial-banks-asset-classification-provisioning-and-income-recognition-directions-2026","status":"publish","type":"post","link":"https:\/\/bhatiabhola.com\/index.php\/blog\/2026\/05\/03\/rbi-directions-398-2026-dated-27-04-2026-commercial-banks-asset-classification-provisioning-and-income-recognition-directions-2026\/","title":{"rendered":"RBI Directions 398\/2026 Dated 27\/04\/2026 &#8211; Commercial Banks Asset Classification, Provisioning and Income Recognition Directions 2026\u00a0"},"content":{"rendered":"\n<p>The directions introduce a forward-looking Expected Credit Loss (ECL) framework alongside existing NPA norms, supported by a three stage classification approach based on credit risk changes. Banks must adopt the Effective Interest Rate (EIR) method and compute provisions using probability based models incorporating macroeconomic factors. NPAs continue to be defined primarily by a 90 day overdue rule, with borrower level classification and detailed norms for special cases such as agriculture, guarantees, and consortium lending. Prudential provisioning floors are prescribed across loan categories to ensure minimum loss coverage.\u00a0<\/p>\n\n\n\n<p><a href=\"https:\/\/rbidocs.rbi.org.in\/rdocs\/notification\/PDFs\/MD39857992A3DBE7946619F0F76DF81E472CF.PDF\"><em>(Link:&nbsp;RBI Directions 398\/2026 Dated 27\/04\/2026)<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The directions introduce a forward-looking Expected Credit Loss (ECL) framework alongside existing NPA norms, supported by a three stage classification [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[72,102],"tags":[],"class_list":["post-5697","post","type-post","status-publish","format-standard","hentry","category-rbi","category-master-directions"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.2 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>RBI Directions 398\/2026 Dated 27\/04\/2026 - Commercial Banks Asset Classification, Provisioning and Income Recognition Directions 2026\u00a0 - Bhatia Bhola &amp; 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