The Reserve Bank of India (RBI) has issued the Small Finance Banks – Financial Statements: Presentation and Disclosures Directions, 2025, under Section 35A of the Banking Regulation Act, 1949, to standardize the preparation, presentation, and disclosure of financial statements by small finance banks. Effective immediately, these directions apply to all small finance banks in India and aim to enhance transparency, comparability, and reliability of financial reporting. The directions provide a regulatory framework ensuring banks adhere to consistent accounting policies, present financial data clearly, and disclose necessary information to stakeholders, including investors, depositors, and regulators. While the directions specify presentation and disclosure norms, they do not automatically authorize any activity or transaction; banks must comply with existing statutory and regulatory requirements. By mandating uniform reporting standards, RBI seeks to strengthen governance, improve financial statement integrity, and support informed decision-making, thereby contributing to the overall stability and trustworthiness of the small finance banking sector.
RESERVE BANK OF INDIA
RBI/DOR/2025-26/198
DOR.ACC.REC.No.117/21.04.018/2025-26 | Dated: November 28, 2025
Reserve Bank of India (Small Finance 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 (Small Finance 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 Small Finance 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/198MD.pdf
