Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Amendment Directions, 2026

**Executive Summary** This document, issued by the Reserve Bank of India (RBI) on January 1, 2026, outlines amendment directions to the “Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025.” The amendment modifies the table under Paragraph 5(1) of the original directions. The amendment comes 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 Financial Statement Directions:** Modifies the table under Paragraph 5(1) of the "Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025.” * **Capital Disclosure (Schedule 1):** * For nationalized banks: requires disclosure of the owned capital. * For banks incorporated outside India: requires disclosure of the amount held under Section 11(2)(b)(i) of the BR Act and earmarked as Credit Risk Mitigation (CRM) by way of a note in Schedule 1 of the Balance Sheet. Example of wording: "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 comes 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** **Stakeholders Impacted:** Commercial Banks **Impact:** * Revised reporting requirements for capital, particularly for banks incorporated outside India concerning Credit Risk Mitigation (CRM). * Modifications to Schedule 1 of Balance Sheet Notes. **Action Required:** * Commercial banks must update their financial reporting templates and processes to comply with the new disclosure requirements. * Commercial banks must review existing CRM designations and ensure proper reporting in Schedule 1. * Banks must implement the provisions by April 1, 2026, at the latest, or earlier if they decide to implement paragraphs 3(1) to 3(4) of the RBI's Concentration Risk Management Amendment Directions, 2025.

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