New Delhi, July 19 -- If a bank acquires your house, commercial property or other immovable asset while recovering a defaulted loan, it can no longer hold on to it indefinitely or sell it back to you.

The Reserve Bank of India (RBI) has issued a new prudential framework governing how banks should account for, value and dispose of immovable properties acquired during the recovery of stressed loans. The directions, which come into effect from October 1, 2026, require banks to put in place Board-approved policies for managing such assets and prescribe timelines for their disposal.

The framework applies to immovable properties that banks acquire in satisfaction of their claims during the recovery of stressed loans. RBI said banks are genera...