The Reserve Bank of India issued the Commercial Banks – Financial Statements: Presentation and Disclosures (Second Amendment) Directions, 2026 on January 5, 2026, to strengthen transparency around related-party exposures in banks’ financial statements. Issued following a review aligned with the amended Credit Risk Management framework, the Directions introduce a new disclosure requirement in the Notes to Accounts. Banks must now present a structured, tabular disclosure of exposures to related parties, covering loans and other arrangements. The mandated disclosures include aggregate loans sanctioned and outstanding, their proportion to total credit exposure, classification into Special Mention Accounts and Non-Performing Assets, and provisions held. Additionally, banks must disclose the value of contracts and arrangements awarded to, and outstanding with, related parties. These disclosures are required for both the current and previous year, enhancing comparability and risk visibility. The amendments take effect from April 1, 2026, with an option for banks to adopt them earlier in full, reinforcing governance, accountability, and informed stakeholder assessment.
RESERVE BANK OF INDIA
RBI/2025-26/181
DOR.CRE.REC.382/21.04.018/2025-26 | Dated: January 05, 2026
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026
Please refer to 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 the Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) – Amendment Directions, 2026, and in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (hereinafter called 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 Directions as under:
3(1) In Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’, a new sub-sub paragraph (ix) shall be inserted under sub-paragraph 10(5) on ‘Exposures’, as given below:
10(5)(ix) Exposures to Related Parties
Details of exposures to related parties as defined in Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Directions, 2025 shall be disclosed as per the following table:
(Amount in ₹ crore)
| Sl No. |
Particulars | Previous Year |
Current Year |
| A. Loans to Related Parties | |||
| 1 | Aggregate value of loans sanctioned to related parties during the year | ||
| 2 | Aggregate value of outstanding loans to related parties as on 31st March | ||
| 3 | Aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on 31st March | ||
| 4 | Aggregate value of outstanding loans to related parties which are categorized as: | ||
| (i) Special Mention Accounts as on 31st March | |||
| (ii) Non-Performing Assets as on 31st March | |||
| 5 | Amount of provisions held in respect of loans to related parties as on 31st March | ||
| B. Contracts and Arrangements involving Related Parties | |||
| 6 | Aggregate value of contracts and arrangements awarded to related parties during the year | ||
| 7 | Aggregate value of outstanding contracts and arrangements involving related parties as on 31st March | ||
The above amendments shall come into force from April 1, 2026. Banks may however decide to implement the amendments in entirety from an earlier date.
Vaibhav Chaturvedi
(Chief General Manager)
