Specified non-financial assets refer to immovable properties that banks acquire when borrowers fail to repay loans
Written by: George Mathew
4 min readMumbaiJul 16, 2026 09:29 PM IST
The RBI has issued the Third Amendment Directions, 2026 under its Commercial Banks-Resolution of Stressed Assets Directions, 2025. (File Photo)
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The Reserve Bank of India (RBI) has introduced the concept of specified non-financial assets (SNFAs) in the event of loan defaults and mandated that disposal of such assets should primarily be through public auctions under SARFAESI Act principles and prohibited resale to the original borrower or related parties.
SNFAs refer to immovable properties that banks acquire when borrowers fail to repay loans. Such assets include residential buildings, commercial properties, industrial land or other real estate accepted by banks in settlement of outstanding debt.
The RBI has issued the Third Amendment Directions, 2026 under its Commercial Banks-Resolution of Stressed Assets Directions, 2025. The new regulations establish a comprehensive framework for how banks should acquire, value, manage and dispose of non-financial assets obtained from defaulting borrowers.
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