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

**Executive Summary** The Reserve Bank of India (RBI) has issued the Fourth Amendment Directions, 2026, concerning the presentation and disclosure of financial statements by commercial banks. This document modifies existing directions regarding the disclosure of 'Exposure to real estate sector'. These directions will be effective from July 1, 2026, unless a bank adopts earlier the directions contained in the Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026. **Key Points / Main Content** * **Modification of Disclosure:** * In ‘Chapter-III Disclosure in Financial Statements – Notes to Accounts’, sub-subparagraph 10(5)(i) titled ‘Exposure to real estate sector', under Sl. No. i) ‘Direct exposure', item b) ‘Commercial Real Estate' shall stand modified. * Banks need to disclose 'Current Year' and 'Previous Year' figures in the specified format. * **Scope of 'Commercial Real Estate' Exposure:** * Includes lending secured by mortgages on various commercial real estate types (office buildings, retail space, multi-purpose commercial premises, multifamily residential buildings, multi tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development, and construction, etc.). * Exposure includes non-fund based (NFB) limits. * Includes Exposure to Real Estate Investment Trusts (REITs) and other commercial real estate. * **Effective Date:** * The directions are effective from July 1, 2026, or an earlier date if a bank adopts the complete Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026. **Impact Analysis** **Commercial Banks** * **Impact:** The commercial banks will need to modify their financial statement presentation and disclosures related to real estate exposure. * **Action Required:** Banks must implement changes to their financial reporting systems to comply with the updated disclosure requirements and ensure the correct data is captured for both the current and previous years. They also have the option of adopting the changes earlier if they implement the Credit Facilities Second Amendment Directions, 2026, in full.

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