RBI (Commercial Banks – Financial Statements: Presentation and Disclosures) Fourth Amendment Directions, 2026 – Draft for Comments

The Reserve Bank of India (RBI) has issued Draft Fourth Amendment Directions, 2026 to modify the Commercial Banks – Financial Statements: Presentation and Disclosures framework, aligning it with proposed amendments under the Credit Facilities Directions. Exercising powers under Sections 21 and 35A of the Banking Regulation Act, 1949, the RBI proposes enhanced disclosure requirements relating to real estate exposure. The amendment revises the Notes to Accounts section under “Exposure to real estate sector” by restructuring the disclosure of Commercial Real Estate (CRE). Banks will now be required to separately disclose (i) lending secured by mortgages on commercial real estate, including land acquisition, development, construction and non-fund based limits; (ii) exposure to Real Estate Investment Trusts (REITs); and (iii) other commercial real estate exposures. The revised format aims to improve transparency and granular reporting of real estate-linked risks. The Directions will come into effect from July 1, 2026, or earlier upon adoption.

Reserve Bank of India

RBI/2025-26/<>
DOR.CRE.REC. /21.04.018/2025-26

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Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Fourth Amendment Directions, 2026 – Draft for Comments

Please refer to the Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 (hereinafter referred to as ‘Directions’).

2. Consequent to the amendments proposed in the draft Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026, in exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India in this regard, the Reserve Bank of India, being satisfied that it is necessary and expedient in public interest so to do , hereby, issues the Directions hereinafter specified.

3. These Amendment Directions shall modify the Directions as under:

3(1) In ‘Chapter-III Disclosure in Financial Statements – Notes to Accounts’, sub-subparagraph 10(5)(i) titled ‘Exposure to real estate sector’, under Sl. No. i) ‘Direct exposure’, item b) ‘Commercial Real Estate’ shall stand modified as under:

4. These Directions shall come into force from July 1, 2026, or an earlier date if the directions contained in the Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026 are adopted by a bank in entirety.

(Vaibhav Chaturvedi)
Chief General Manager