The Reserve Bank of India has issued the Third Amendment Directions, 2026 (Revised) to the Commercial Banks – Financial Statements: Presentation and Disclosures framework, aligning disclosure norms with the updated Credit Facilities Directions, 2026. The amendment revises Paragraph 10(5) relating to “Exposures” by deleting an earlier sub-clause and introducing a detailed disclosure format for “Exposure to Capital Markets.” Banks are now required to provide granular reporting of capital market exposures, including direct investments, advances against securities, acquisition and bridge finance, funding to intermediaries, underwriting commitments, and derivative-related exposures. This expanded disclosure aims to enhance transparency, improve risk assessment, and ensure consistent reporting standards across banks. The revised framework will become effective from the date banks adopt the updated credit facility norms or July 1, 2026, whichever is earlier, and replaces the earlier February 2026 amendment.
RESERVE BANK OF INDIA
RBI/2025-26/257
DOR.CRE.REC.449/21.04.018/2025-26 | Dated March 30, 2026
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) – Third Amendment Directions, 2026 (Revised)
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 (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) dated March 30, 2026, 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 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 (Revised) hereinafter specified.
3. The Amendment Directions (Revised) modify the Directions as under:
3(1) In paragraph 10(5) titled ‘Exposures’ of ‘Chapter-III Disclosure in Financial Statements – Notes to Accounts’ of the Directions, the following modifications shall be effected:
3(1)(i) Sub-paragraph 10(5)(ii) shall be deleted.
3(1)(ii) After sub-paragraph 10(5)(ii), the following new sub- paragraph (iia) shall be inserted:
(iia) Exposure to Capital Markets
(Amount in ₹ crore)
| Sr. No. | Particulars | Current Year | Previous Year |
| (i) | Direct investment in equity and preference shares; convertible bonds; convertible debentures; units of non-debt mutual fund schemes; units of REITs and InvITs and units of Alternative Investment Funds (AIFs) | ||
| (ii) | Advances to individuals for investment in shares (including IPOs/FPOs/ESOPs), convertible bonds, convertible debentures, and units of non-debt mutual fund schemes | ||
| (iii) | Advances for any other purposes where shares or convertible bonds or convertible debentures or units of non-debt mutual fund schemes are taken as primary security | ||
| (iv) | Advances for any other purposes to the extent secured by collateral of shares, convertible bonds, convertible debentures or units of non-debt mutual fund schemes, where the advances are extended on the principal strength of such collateral | ||
| (v) | All credit facilities to Capital Market Intermediaries (CMIs) | ||
| (vi) | Acquisition finance | ||
| Out of (vi) acquisition finance by overseas branches of Indian banks | |||
| Out of (vi) Bridge Finance for meeting own funds requirement of acquiring companies | |||
| (vii) | Financing to non-debt mutual fund schemes. | ||
| (viii) | Bridge finance to companies for meeting upfront contribution to the equity of new companies being set up | ||
| (ix) | Underwriting commitments taken up by the banks in respect of primary issue of shares or convertible bonds or convertible debentures or bonds where end use is acquisition finance or units of non-debt mutual fund schemes | ||
| (x) | Irrevocable Payment Commitments issued by custodian banks on behalf of its clients in favour of clearing corporations of stock exchanges | ||
| (xi) | Trade exposures of a bank, which is acting as a clearing member in equity derivative and commodity derivative transactions, to its client, including funded initial margins placed on behalf of clients, where permissible | ||
| Total exposure to capital market |
Note: The capital market exposure reported in the table above shall be computed in terms of Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025 read with Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025.
4. The above revised amendments shall come into force from the date a bank decides to implement the provisions of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) dated March 30, 2026 or from July 1, 2026, whichever is earlier, and shall supersede the Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) – Third Amendment Directions, 2026 dated February 13, 2026.
Vaibhav Chaturvedi
(Chief General Manager)
