Mumbai, July 16 -- 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.

Under the amended directions, an SNFA refers to an immovable asset acquired by a lender in full or partial satisfaction of its claims on a borrower. For banks, the definition also includes non-banking asset...