**Executive Summary**
The Reserve Bank of India issued amendment directions on January 1, 2026, concerning the presentation and disclosures of financial statements for commercial banks. These directions, referred to as the Amendment Directions, modify the table under Paragraph 5(1) of the 'the Directions' and come into force when a bank decides to implement paragraphs 3(1) to 3(4) of the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025 or from April 1, 2026, whichever is earlier.
**Key Points / Main Content**
* **Amendment to Paragraph 5(1) Table:**
* The Amendment Directions modify the table under Paragraph 5(1) of 'the Directions'.
* **Item:** Capital
* **Schedule:** 1
* **Coverage:**
* Nationalised Banks Capital
* Banks Incorporated outside India: Capital
* **Notes and Instructions for compilation:**
* The capital owned
* The amount held under Section 11(2)(b)(i) of the BR Act and earmarked as Credit Risk Mitigation (CRM) shall be disclosed by way of a note in Schedule 1: Capital to the Balance Sheet
* 'An amount of ... (Previous year: *....) out of the amount held as deposit under Section 11(2) of the BR Act has been earmarked designated as credit risk mitigation (CRM) for offsetting of non-centrally cleared derivative exposures to Head Office (including overseas branches of Head Office) and is not reckoned for regulatory capital and any other statutory requirements, if any.'
* **Effective Date:**
* The amendment will come into force from the date a bank decides to implement paragraphs 3(1) to 3(4) of the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025 or from April 1, 2026, whichever is earlier.
**Impact Analysis**
**Commercial Banks**
* **Impact:** The banks must adhere to the new disclosure requirements when preparing their financial statements, specifically regarding capital and credit risk mitigation.
* **Action Required:** Banks need to review and update their financial statement preparation and disclosure processes to align with the amended directions. They must also decide when to implement paragraphs 3(1) to 3(4) of the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025.
Key Entities Referenced
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025: Directions governing the presentation and disclosures of financial statements by commercial banks, as referenced in this amendment direction.
Banking Regulation Act, 1949: Indian law that regulates banking companies.
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025: Amendment Directions related to Concentration Risk Management, triggering a review and subsequent adjustments to the 'Financial Statements: Presentation and Disclosures' Directions.
Reserve Bank of India: The central bank of India, responsible for issuing these directives.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
_________________________ ______________________
www.rbi.org.in
RBI/2025-26/167
DOR.CRE.REC.371/21.04.018/2025-26 January 1, 2026
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation
and Disclosures) Amendment Directions, 2026
Please refer to the 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 Reserve Bank of India (Commercial
Banks – Concentration Risk Management) Amendment Directions, 2025, 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 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 hereinafter specified.
3. The Amendment Directions modifies the table under Paragraph 5(1) of the
Directions as under:
Item Sch Coverage Notes and instructions for compilation
Capital 1 Nationalised Banks The capital owned ….
Capital ….
Banks incorporated The amount ……..
outside India : Capital
The amount held under Section 11(2)(b)(i)
of the BR Act and earmarked as Credit Risk
Mitigation (CRM) shall be disclosed by way
of a note in Schedule 1 : Capital to the
Balance Sheet as given below:
‘An amount of ₹… (Previous year: ₹….) out
of the amount held as deposit under Section
11(2) of the BR Act has been earmarked
designated as credit risk mitigation (CRM)
विवियमि विभाग, केंद्रीय कायाालय, केंद्रीय कायाालय भिि, 12िी/ीं 13िी ींमींव़िल, शहीद भगत व ींह मागा, फोर्ा, म ींबई - 400001
र्ेलीफोि/ Tel No: 22661602, 22601000 फैक्स/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
हहदिं ी आसान ह,ैं इसका प्रयोग बड़ाइएItem Sch Coverage Notes and instructions for compilation
for offsetting of non-centrally cleared
derivative exposures to Head Office
(including overseas branches of Head
Office) and is not reckoned for regulatory
capital and any other statutory requirements,
if any.’
4. The above amendment shall come into force from the date a bank decides to
implement paragraphs 3(1) to 3(4) of the Reserve Bank of India (Commercial Banks -
Concentration Risk Management) Amendment Directions, 2025 or from April 1, 2026,
whichever is earlier.
(Vaibhav Chaturvedi)
Chief General Manager