Reserve Bank of India (All India Financial Institutions – Financial Statements: Presentation and Disclosures) – Amendment Directions, 2026

**Executive Summary** This document outlines amendment directions issued by the Reserve Bank of India (RBI) regarding the presentation and disclosure requirements for All India Financial Institutions (AIFIs) in their financial statements. It mandates the disclosure of exposures to related parties, as defined in the RBI's Credit Risk Management Directions, with effect from April 1, 2026, although AIFIs may implement the changes earlier. These amendments are issued following a review and the issuance of the RBI’s Credit Risk Management Amendment Directions, 2026. **Key Points / Main Content** * **Amendment:** Modifies the existing "Reserve Bank of India (All India Financial Institutions – Financial Statements: Presentation and Disclosures) Directions, 2025". * **Disclosure Requirements:** * A new sub-sub paragraph (vi) will be inserted under sub-paragraph 19(9) of Chapter-IV, ‘Disclosure in Financial Statements – Notes to Accounts', on ‘Credit concentration risk'. * This addition specifically addresses disclosure of "Exposures to Related Parties". * Details of exposures to related parties, as defined in the Reserve Bank of India (All India Financial Institutions– Credit Risk Management) Directions, 2025, must be disclosed. * **Required Disclosures:** * The disclosure must include: * Aggregate value of loans sanctioned to related parties during the year. * Aggregate value of outstanding loans to related parties as on 31st March. * Aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on 31st March. * Aggregate value of outstanding loans to related parties categorized as (i) Special Mention Accounts as on 31st March and (ii) Non-Performing Assets as on 31st March. * Amount of provisions held in respect of loans to related parties as on 31st March. * Aggregate value of contracts and arrangements awarded to related parties during the year. * Aggregate value of outstanding contracts and arrangements involving related parties as on 31st March. * **Effective Date:** * The amendments come into force from April 1, 2026. * AIFIs have the option to implement the changes in their entirety from an earlier date. **Impact Analysis** **Stakeholder: All India Financial Institutions (AIFIs)** * **Impact:** AIFIs must modify their financial statement presentation and disclosure practices to comply with the new requirements for disclosing exposures to related parties. * **Action Required:** AIFIs need to update their reporting systems and processes to capture and present the required data on related party exposures, as well as update their related party relationships in the manner prescribed in Reserve Bank of India (All India Financial Institutions – Credit Risk Management) Directions, 2025, and prepare for the amendments to take effect from April 1, 2026 (or potentially earlier, if they choose).

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