Under the RBI's 'Prudential Blueprint for Specified Non-Financial Assets (SNFAs)' directions, effective October 1, 2026, a bank must dispose of an acquired SNFA within a maximum of:

Explanation: A Specified Non-Financial Asset (SNFA), also called a Non-Banking Asset (NBA), is immovable property a bank acquires (e.g., under the SARFAESI Act, 2002) to satisfy claims against a defaulting borrower. RBI's new directions require banks to adopt a Board-approved policy capping the SNFA portfolio and enforcing a mandatory disposal window not exceeding 7 years, along with conservative initial valuation at the lower of Net Book Value or Distress Sale Value, and a ban on selling the asset back to the defaulting borrower or related parties.