**Executive Summary**
This document, issued by the Reserve Bank of India (RBI) on January 1, 2026, outlines amendments to the "Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025." These amendments modify the table under Paragraph 5(1) of the original Directions, specifically concerning the presentation and disclosure of capital. The amendments become effective when a bank decides to implement paragraphs 3(1) to 3(4) of the "Commercial Banks - Concentration Risk Management) Amendment Directions, 2025" or April 1, 2026, whichever is earlier.
**Key Points / Main Content**
* **Amendment to Capital Disclosure (Schedule 1):**
* **Nationalised Banks Capital:** The "Capital" item under Schedule 1 now requires disclosure of "The capital owned…".
* **Banks incorporated outside India: Capital**: Requires the disclosure of "The amount" held under Section 11(2)(b)(i) of the BR Act.
* Any amount held under Section 11(2)(b)(i) of the BR Act and earmarked as Credit Risk Mitigation (CRM) must be disclosed in Schedule 1 as a note on the Balance Sheet. The note should state the amount and specify that it has been earmarked/designated as credit risk mitigation (CRM). This note should also state that it is for offsetting of non-centrally cleared derivative exposures to Head Office and is not reckoned for regulatory capital.
* **Effective Date:**
* The amendments come into force when a bank decides to implement paragraphs 3(1) to 3(4) of the RBI's "Commercial Banks – Concentration Risk Management) Amendment Directions, 2025", or from April 1, 2026, whichever is earlier.
**Impact Analysis**
**Key Stakeholders:** Commercial Banks Operating in India
**Impact:**
* Revised disclosure requirements for capital, particularly for banks incorporated outside India, necessitating changes to financial reporting procedures.
**Action Required:**
* Banks need to update their financial statement presentation and disclosure practices to align with the amended directions, specifically concerning the disclosure of amounts held under Section 11(2)(b)(i) of the BR Act earmarked as Credit Risk Mitigation. Banks must decide when to implement paragraphs 3(1) to 3(4) of the RBI's "Commercial Banks – Concentration Risk Management) Amendment Directions, 2025".
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for issuing the directions.
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025: The primary directions being amended by this document, concerning financial statements presentation and disclosures for commercial banks.
Banking Regulation Act, 1949: The key legislation that grants powers to the Reserve Bank of India.
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025: Directions related to the management of concentration risk by commercial banks, triggering the need for amendments.
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