The Reserve Bank of India (RBI) has introduced draft norms permitting lenders to acquire ownership of immovable assets used as collateral only after the borrower's account is classified as non-performing. This initiative aims to enhance recovery strategies while maintaining transparency in asset management. Under these proposed guidelines, lenders can acquire specified non-financial assets (SNFAs) only after exploring other recovery options deemed unviable. The acquisition of these assets will occur on a non-recourse basis, meaning the lender's claim against the borrower will be partially or fully extinguished. The draft stipulates a maximum holding period of seven years for such assets, after which they must be disposed of through public auction. Lenders are prohibited from reselling these assets back to the borrower or related parties to mitigate moral hazard. Additionally, the assets must be revalued every two years based on distress sale conditions, with any loss in value immediately recognized in financial statements. Feedback on these draft guidelines is sought until May 26, 2026.