The Reserve Bank of India issued the Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Amendment Directions, 2026 on 1 January 2026, amending the 2025 Directions on review following the Concentration Risk Management Amendment Directions, 2025. Exercising powers under sections 21 and 35A of the Banking Regulation Act, 1949, the RBI modified disclosure requirements relating to capital in banks’ financial statements. Specifically, the amendment updates the table under Paragraph 5(1) of the Directions to introduce an additional disclosure for banks incorporated outside India. Such banks are now required to disclose, by way of a note under Schedule 1 (Capital) of the balance sheet, the portion of deposits maintained under Section 11(2)(b)(i) of the Banking Regulation Act that has been earmarked or designated as Credit Risk Mitigation (CRM). The disclosure must include the amount earmarked and comparative figures for the previous year. The amendment enhances transparency and aligns financial statement disclosures with revised prudential risk management norms.
RESERVE BANK OF INDIA
India’s Central Bank
RBI/2025-26/167
DOR.CRE.REC.371/21.04.018/2025-26 | Dated: January 1, 2026
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Amendment Directions, 2026
Please refer to the Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 (hereinafter referred to as ‘the Directions’).
2. On a review consequent to the issuance of Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025, and in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified.
3. The Amendment Directions modifies the table under Paragraph 5(1) of the Directions as under:
| Item | Sch | Coverage | Notes and instructions for compilation | |
| Capital | 1 | Nationalised Banks Capital …. | The capital owned …. | |
| Banks incorporated outside India : Capital | The amount……..
The amount held under Section 11(2)(b)(i) of the BR Act and earmarked as Credit Risk Mitigation (CRM) shall be disclosed by way of a note in Schedule 1 : Capital to the Balance Sheet as given below: ‘An amount of ₹… (Previous year: ₹….) out of the amount held as deposit under Section 11(2) of the BR Act has been earmarked designated as credit risk |
