Reserve Bank of India (Local Area Banks – Credit Risk Management) Second Amendment Directions, 2026
RBI notification RBI/2026-27/55 · 29 Apr 2026
RBI notification RBI/2026-27/55 · 29 Apr 2026
Summary
Check the official recordThe Reserve Bank of India amends the credit risk management directions for Local Area Banks. Banks must include the possible impact of calamities in credit assessments for borrowers. This requirement applies to all credit evaluations. The amendment takes effect on July 1, 2026.
What you must do
Key dates
Who is affected
RBI/2026-27/55 DOR.STR.REC.44/21-04-048/2025-26 April 29, 2026
Reserve Bank of India (Local Area Banks – Credit Risk Management) Second Amendment Directions, 2026
Please refer to Reserve Bank of India (Local Area Banks – Resolution of Stressed Assets) Amendment Directions, 2026 dated April 29, 2026.
Consequent to the aforesaid Amendment Directions, in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called 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.
These Amendment Directions modify the Directions as under:
i. Chapter IIA shall be inserted as under:
Chapter IIA: Credit Risk Evaluation
5A. Credit assessments carried out by a bank shall suitably factor in the possible impact of calamities on borrowers who may be impacted by such events.
(Vaibhav Chaturvedi) Chief General Manager