RBI ·

RBI mandates 5% extra provisioning for AIFI Chapter VI-A restructurings

AIFI finance teams must book 5% extra provisions per Chapter VI-A restructure from July 1

Financial Services
Save
Change
India's RBI imposed an additional 5% specific provision per Chapter VI-A restructuring on All India Financial Institutions, effective July 1, 2026.
Why it matters
AIFIs must add 5% specific provisioning on outstanding debt for each Chapter VI-A restructuring instance, capped at 100%. Write-back is allowed only after the borrower repays at least 20% without slipping into NPA. Repeat restructurings require fresh 5% provisioning each time.
Implications
  • — AIFI finance teams must update provisioning models by July 1, 2026 — under-provisioning breaches RBI prudential norms.
  • — AIFI credit administration teams must apply a fresh 5% provision for each repeated Chapter VI-A restructuring.
  • — AIFI finance teams must withhold provision write-backs until RBI reversal tests are met.

See full brief

Use 1 free preview to unlock implications, who’s affected, what to watch, and Clarify for this brief.

2 free previews left this month · Resets 1 Jul

View on RBI
Clarify with AI

Unlock this brief free to ask your question.

Start with a decision question — or ask your own below

Clarify with AI — Pro only

You asked:

Clarify turns any brief into answers specific to your role and exposure.

Pro includes

Implications — what this change may force you to review
Who is affected — which people, workflows, or obligations are touched
What to watch — dates, deadlines, and triggers that matter next
Real-time alerts — delivered when a decision-forcing change is published
Clarify with AI — ask what this change means for you

$29/month · Founding rate, locked for life. Cancel anytime.

Start your trial to clarify this brief

You asked:

Clarify is part of Pro. Start a 14-day trial for full access to every brief, unlimited Clarify questions, and real-time alerts.

Pro includes

Implications — what this change may force you to review
Who is affected — which people, workflows, or obligations are touched
What to watch — dates, deadlines, and triggers that matter next
Real-time alerts — delivered when a decision-forcing change is published
Clarify with AI — ask what this change means for you

$29/month after trial. No credit card required. Cancel anytime.

Start 14-day trial Sign in

Unlock this brief to clarify it

Use 1 free preview to unlock the full brief — implications, who’s affected, what to watch, and Clarify for this brief.

2 free previews left this month · Resets 1 Jul