**Executive Summary**
This document contains the Reserve Bank of India's (RBI) Amendment Directions, 2026, which modify the presentation and disclosure requirements for commercial banks' financial statements. The amendment, effective from January 1, 2026, modifies the table under paragraph 5(1) of the Directions. 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.
**Key Points / Main Content**
* **Amendment Details:**
* The amendment modifies the table under Paragraph 5(1) of the Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025.
* The modification pertains to the "Capital" item under Schedule 1.
* **Nationalised Banks Capital Reporting:**
* The capital owned by nationalized banks should be reported.
* **Banks Incorporated Outside India: Capital Reporting:**
* Report the amount held under Section 11(2)(b)(i) of the BR Act and earmarked as Credit Risk Mitigation (CRM).
* Disclose the earmarked CRM amount via a note in Schedule 1 of the Balance Sheet.
* Indicate if the amount is for offsetting of non-centrally cleared derivative exposures to Head Office and if it is not reckoned for regulatory capital and any other statutory requirements.
* **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**
**Stakeholder: Commercial Banks**
* **Impact:** Requires revised reporting of capital in financial statements, specifically concerning amounts earmarked for Credit Risk Mitigation and derivative exposures.
* **Action Required:** Implement the amendment directions by the earlier of either:
* the date when the bank implements paragraphs 3(1) to 3(4) of the Reserve Bank of India (Commercial Banks - Concentration Risk Management) Amendment Directions, 2025.
* April 1, 2026.
Revise financial statement presentation to reflect the changes in Schedule 1 regarding capital reporting.
Key Entities Referenced
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025: The primary directions being amended in this document, concerning financial statements of commercial banks.
Reserve Bank of India (Commercial Banks – Concentration Risk Management) Amendment Directions, 2025: The document triggering the amendment of the 'Financial Statements' Directions, related to risk management for commercial banks.
Banking Regulation Act, 1949: The law under which the Reserve Bank of India derives its power to issue the Directions.
Reserve Bank of India: The issuing authority of the Directions and Amendment Directions.
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