New Delhi, July 16 -- The Reserve Bank of India (RBI) has issued final directions for commercial banks, small finance banks (SFBs) and non-banking financial companies (NBFCs), directing them not to recognise unrealised interest and charges as income when they acquire specified non-financial assets (SNFAs) in resolution of stressed loans.

The directions follow the finalisation of the Prudential Norms on Specified Non-Financial Assets (SNFA), after examining stakeholder feedback received on the draft directions issued on May 5, 2026. The amended directions will come into force from October 1.

"Any accrued but unrealised interest and / or charges from the extinguished exposure pertaining to periods prior to acquisition of an SNFA, shall no...