Banking and RBI
RBI issues final Directions on Asset Classification, Provisioning and Income Recognition
27 April 2026 | Reserve Bank of India press release
On 27 April 2026 the RBI issued the final Reserve Bank of India (Commercial Banks - Asset Classification, Provisioning and Income Recognition) Directions. The draft had been issued on 7 October 2025 for stakeholder feedback, which was examined and incorporated as deemed appropriate, with a statement on the feedback annexed.
Alongside, the RBI issued 13 Amendment Directions and one Repeal Direction as consequential changes. They cover areas such as Resolution of Stressed Assets, Concentration Risk Management, Investment Portfolio, Credit Risk Management, Credit and Debit Cards, Asset Liability Management, Credit Facilities, Financial Statements, Urban Cooperative Banks' stressed assets resolution, Transfer and Distribution of Credit Risk and Treatment of Wilful Defaulters and Large Defaulters.
Key facts- Final Directions issued: 27 April 2026 (draft: 7 October 2025)
- Applies to: Commercial Banks
- Consequential: 13 Amendment Directions and 1 Repeal Direction
- Topics: classification, provisioning, income recognition
Exam takeaway: Asset classification groups loans as standard or stressed, which decides provisioning.
Quick revision: RBI final Directions on asset classification, provisioning, income recognition (27 Apr 2026) with 13 amendments, 1 repeal.
Reserve Bank of India press release original sourceBanking and RBI
RBI issues final Basel III credit risk standardised approach Directions, effective 1 April 2027
27 April 2026 | Reserve Bank of India press release 2026-2027/149
The RBI issued the Reserve Bank of India (Scheduled Commercial Banks - Capital Charge for Credit Risk - Standardised Approach) Directions, 2026 on 27 April 2026. They are final Directions on Basel III capital charge for credit risk, and take effect from 1 April 2027.
The draft was issued on 7 October 2025. It proposed amendments to the existing standardised approach framework to enhance robustness, granularity and risk sensitivity, and to converge with international standards. Stakeholder feedback was examined and incorporated, with a feedback statement annexed.
Key facts- Directions: SCB Capital Charge for Credit Risk - Standardised Approach, 2026
- Issued: 27 April 2026
- Effective: 1 April 2027
- Aim: more granular, risk-sensitive, convergence with international standards
Exam takeaway: The standardised approach assigns risk weights to exposures to compute the capital a bank must hold.
Quick revision: RBI Basel III credit risk (standardised approach) Directions 2026: effective 1 Apr 2027.
Reserve Bank of India press release 2026-2027/149 original sourceBanking and RBI
RBI directs AD Category-I banks to report related parties' INR derivatives to CCIL
27 April 2026 | Reserve Bank of India press release 2026-2027/152
On 27 April 2026 the RBI issued directions on 'Reporting Instructions for Authorised Dealer Category - I Banks'. To improve transparency in the foreign exchange market, they require AD Category-I banks to report forex derivative transactions involving INR undertaken by their related parties globally to the Trade Repository of the Clearing Corporation of India Limited (CCIL).
The draft was issued on 16 February 2026. Feedback was examined and incorporated, and certain feedback on reporting formats and operational aspects was shared with CCIL for examination.
Key facts- Directions: Reporting Instructions for AD Category-I Banks
- Issued: 27 April 2026 (draft 16 February 2026)
- Report to: Trade Repository of CCIL
- Covers: INR forex derivatives by banks' related parties globally
Exam takeaway: AD Category-I banks are banks authorised to deal in foreign exchange.
Quick revision: RBI: AD-I banks to report related parties' INR forex derivatives to CCIL Trade Repository.
Reserve Bank of India press release 2026-2027/152 original sourceEconomy and Finance
Cabinet approves Rs 2,584.60 crore Small Hydro Power scheme
27 April 2026 | ESG News (citing PIB)
ESG News reported on 27 April 2026 that the Union Cabinet approved a small hydro power development scheme with Rs 2,584.60 crore for FY 2026-27 to FY 2030-31. It targets small hydro projects of 1 to 25 MW, especially in the North Eastern and hilly States, with higher assistance for North Eastern States and International Border Districts.
The scheme is projected to generate 51 lakh person-days of employment during construction and supports preparation of detailed project reports for at least 200 new sites. It prioritises indigenous plant and machinery. This item is based on a trade-media report that cites PIB; the PIB release itself was not read.
Key facts- Outlay: Rs 2,584.60 crore, FY 2026-27 to FY 2030-31
- Project size: 1 to 25 MW
- Employment: about 51 lakh person-days in construction
- DPRs: at least 200 new sites
Exam takeaway: Small hydro projects use river or canal flow with limited ecological impact.
Quick revision: Cabinet: Small Hydro scheme Rs 2,584.60 crore, 1-25 MW projects, DPRs for 200 sites (ESG News citing PIB).
ESG News (citing PIB) original source