The Reserve Bank of India has issued an amendment to its Directions on Resolution of Stressed Assets for Urban Cooperative Banks (UCBs).
As per the notification, the amendment modifies the explanation under the existing guidelines by stating that the term “financial difficulty” will now carry the same meaning as defined in the Directions applicable to Small Finance Banks.
This change follows the issuance of updated asset classification and provisioning norms for commercial banks. The amendment has been made under the powers of the Banking Regulation Act, 1949.
The revised provision will come into effect from April 1, 2027.