The RBI has amended prudential norms regarding income recognition for specified non-financial assets for NBFCs, effective October 1, 2026.
RBI Prescribes SNFA Income Recognition Norms for NBFCs
The Reserve Bank of India (RBI) has instituted important amendments to the prudential norms regarding income recognition for specified non-financial assets (SNFAs) for Non-Banking Financial Companies (NBFCs). These amendments are scheduled to come into effect on October 1, 2026.
Changes include protocols for the reversal of unrealized income and guidelines for the accounting treatment of realized receipts, critical for ensuring compliance with financial reporting standards. These directives enhance the efficacy and transparency of operations within the NBFC sector.
Legal advisors and compliance officers dealing with NBFCs must be informed about these changes to guide their clients on adherence to the amended norms and support sound governance practices.