The Reserve Bank of India has issued draft Sixth Amendment Directions, 2026, revising the financial statement presentation and disclosure framework for commercial banks. The amendments follow changes in investment portfolio norms and aim to improve clarity, consistency, and transparency in financial reporting. Key revisions include redefining “Revenue Reserve” to encompass all reserves other than capital reserves while excluding provisions made for depreciation, asset diminution, or known liabilities. Additionally, the amendment introduces a structured disclosure format for tracking the movement of provisions related to non-performing investments (NPIs), requiring banks to report opening balances, provisions made, write-offs or reversals, and closing balances for both the current and previous years. Issued under Section 35A of the Banking Regulation Act, 1949, the proposed changes seek to standardise disclosures and enhance comparability of financial statements across commercial banks.
Reserve Bank of India
RBI/2026-27/
DOR.MRG.REC.No. /00-00-001/2026-27
XX, 2026
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Sixth Amendment Directions, 2026 – Draft for Comments
Please refer to Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025, dated November 28, 2025.
2. On a review, consequent to the issuance of Reserve Bank of India (Commercial Banks – Classification, Valuation, and Operation of Investment Portfolio) Amendment Directions, 2026, and in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (hereinafter called the Act) 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. (i) These Directions shall be called the Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Sixth Amendment Directions, 2026.
(ii) These Amendment Directions shall come into effect on the day these are placed on the official website of the Reserve Bank.
4. The Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025, are amended as provided below.
(i) In the table under paragraph 5(1), notes and instructions for compilation for ‘Revenue and Other Reserves’ under Schedule 2(IV) shall be substituted by the following, namely: –
“The expression ‘Revenue Reserve’ shall mean any reserve other than Capital Reserve. This item will include all reserves, other than those separately classified. The expression ‘reserve’ shall not include any amount retained by way of providing for depreciation, renewals, or diminution in value of assets or retained by way of providing for any known liability.”.
(ii) Paragraph 10(3)(vi) shall be substituted by the following, namely: –
“Movement of provisions for non-performing investments (NPIs)
| (Amount in ₹ crore) | ||
| Particulars | Current Year | Previous Year |
| i) Movement of provisions held towards NPIs
a) Opening balance b) Add: Provisions made during the year c) Less: Write off / write back of excess provisions during the year d) Closing balance |
||
”.
(Sunil T S Nair)
Chief General Manager
