BLOG NO 46/2026 DATED 1ST AUGUST 2026
In this document we have covered the select RBI notifications and directives issued during July 2026 and produced a gist of it. For detailed and full study, readers may refer to the links provided below the gist.
1. Specified Non-Financial Assets in Banks
Specified non-financial asset (SNFA) means an immovable asset acquired by a bank in satisfaction or part satisfaction of its claims on the borrower, including non-banking assets (NBAs) acquired in terms of the relevant provisions of the BR Act, 1949.
An SNFA shall be deemed to have been acquired only if the title of the asset is transferred in the name of the bank, and the bank is in a clear position to deal with the asset on its own.
SNFA shall be acquired only when a bank’s exposures is classified as non-performing.
Partial extinguishment of exposure shall be treated as restructuring and the residual exposure to the borrower shall attract the prudential treatment applicable to restructuring.
SNFA shall be valued at Net Book Value of the extinguished exposure or the distressed sale value (lower of the 2 distressed sale value) whichever is lower. (Example: Net Book Value of exposure -2 crore, 1st Distressed value of asset – 1.75 crore, 2nd Distressed value – 1.65 crore; the asset will be valued at 1.65 crore)
SNFA shall be disposed off within maximum 7 years.
SNFA shall not be sold back to the borrower or their related parties.
If the SNFA is used by the bank for its own purpose, it will not be classified as SNFA.
Link to RBI notification: NT187A63B1C730CB2466A816A3468F005A157.PDF
2. Special Rupee Vostro Account (SRVA)
AD banks in India may open Special Rupee Vostro Accounts (SRVAs) of their branches outside India or a bank resident outside India, in terms of Regulation 7(1) of Foreign Exchange Management (Deposit) Regulations, 2016.
The settlement of cross-border trade transactions through SRVA is an additional arrangement for invoicing, payment and settlement of exports and imports in INR.
SRVA may be funded by way of inward remittances or transfer from other repatriable INR accounts.
Link to RBI notification: NOTI2033D4B28F9A3A54B548FF6B13A8E8F5355.PDF
Note: Look for updates on important and select guidelines from RBI for the months of April, May & June in following blogs at sillypoint.
RBI CIRCULARS UPDATE JUNE 2026 – At Silly Point
RBI CIRCULARS UPDATE MAY 2026 – At Silly Point
SELECT RBI CIRCULARS UPDATE APR 2026 – At Silly Point
POLICY RATES (As per MPC dated 5th June 2026 – rates unchanged)
Authors Note: For shortfall in CRR and SLR of 3 days or less a rate of Bank Rate + 3% is charged by RBI while for shortfall of above 3 days a of Bank Rate + 5% is charged.
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