The Reserve Bank of India has issued the Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 under its powers conferred by Section 35A of the Banking Regulation Act, 1949 and other enabling provisions. Issued in the public interest, these Directions aim to standardise and regulate the manner in which Local Area Banks present and disclose their financial statements, thereby strengthening transparency, consistency, and regulatory oversight. The Directions are formally titled and structured under Chapter I, setting out preliminary provisions including the short title, commencement, and applicability. They come into force with immediate effect from November 28, 2025. The applicability clause clarifies that the Directions extend to all Local Area Banks, collectively referred to as “banks” and individually as a “bank.” By mandating uniform presentation and disclosure norms, the Directions seek to enhance the quality, comparability, and reliability of financial reporting by Local Area Banks, supporting better supervision and informed stakeholder assessment.
RESERVE BANK OF INDIA
RBI/DOR/2025-26/241
DOR.ACC.REC.No.160/21.04.018/2025-26 | Dated: November 28, 2025
Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Directions, 2025
In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.
Chapter-I Preliminary
A. Short title and commencement
1. These Directions shall be called the Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Directions, 2025.
2. These Directions shall come into force with immediate effect.
B. Applicability
3. These Directions shall be applicable to Local Area Banks (hereinafter collectively referred to as ‘banks’ and individually as a ‘bank’).
Read Full text of the Notification: https://rbidocs.rbi.org.in/rdocs/notification/PDFs/241MD.PDF
