**Executive Summary**
This document pertains to the Reserve Bank of India's (RBI) Fourth Amendment Directions, 2026, concerning the Financial Statements: Presentation and Disclosures for Commercial Banks. It modifies the existing directions related to disclosure in financial statements, specifically regarding exposure to the real estate sector. These directions will be effective from July 1, 2026, or earlier if the banks adopt the second amendment directions in entirety.
**Key Points / Main Content**
* **Amendment to Disclosure in Financial Statements:**
* The Directions modify Chapter-III 'Disclosure in Financial Statements - Notes to Accounts'.
* Specifically, they change sub-subparagraph 10(5)(i) titled ‘Exposure to real estate sector', under Sl. No. i) ‘Direct exposure', item b) ‘Commercial Real Estate'.
* **Modified Definition of 'Commercial Real Estate' Exposure:**
* Includes lending secured by mortgages on commercial real estate (office buildings, retail space, multipurpose commercial premises, multifamily residential buildings, multi tenanted commercial premises, industrial or warehouse space, hotels, land acquisition, development, and construction, etc.).
* Exposure also includes non-fund based (NFB) limits, Exposure to Real Estate Investment Trusts (REITs), and other commercial real estate.
* **Effective Date:**
* The Directions come into force from July 1, 2026.
* An earlier date is possible if the directions contained in the Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026 are adopted by a bank in entirety.
**Impact Analysis**
**Stakeholder: Commercial Banks**
* **Impact**
* Commercial banks need to update their disclosure formats in financial statements to reflect the modified definition of ‘Commercial Real Estate’ exposure.
* Changes to how real estate exposure is calculated to include non-fund based (NFB) limits and REITs.
* **Action Required**
* Review and implement the modified disclosure requirements in their financial reporting processes.
* Adopt these directions no later than July 1, 2026. Consider earlier adoption by adopting the Second Amendment Directions, 2026, in entirety.
Key Entities Referenced
Reserve Bank of India: India's central bank and the issuer of these directions.
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Fourth Amendment Directions, 2026: The primary subject of the document; concerns financial statement presentation and disclosures for commercial banks.
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The main directions that the Fourth Amendment Directions, 2026 modifies.
Banking Regulation Act, 1949: An act that provides the Reserve Bank of India power to issue these Directions.
Reserve Bank of India (Commercial Banks – Credit Facilities) Second Amendment Directions, 2026: Reference direction that is to be complied with for banks to adopt the Fourth Amendment Directions before the effective date.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/<>
DOR.CRE.REC. /21.04.018/2025-26 DD-MM-YYYY
Reserve Bank of India (Commercial Banks – Financial Statements:
Presentation and Disclosures) Fourth Amendment Directions, 2026 – Draft for
Comments
Please refer to the Reserve Bank of India (Commercial Banks – Financial Statements:
Presentation and Disclosures) Directions, 2025 (hereinafter referred to as
‘Directions’).
2. Consequent to the amendments proposed in the draft Reserve Bank of India
(Commercial Banks – Credit Facilities) Second Amendment Directions, 2026, in
exercise of the powers conferred by Sections 21 and 35A of the Banking Regulation
Act, 1949 and all other provisions / laws enabling the Reserve Bank of India in this
regard, the Reserve Bank of India, being satisfied that it is necessary and expedient
in public interest so to do , hereby, issues the Directions hereinafter specified.
3. These Amendment Directions shall modify the Directions as under:
3(1) 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 as under:
Category Current Previous
Year Year
i) Direct exposure
…………………………..
b) Commercial Real Estate
i. Lending secured by mortgages on commercial real estate
(office buildings, retail space, multipurpose commercial premises,
multifamily residential buildings, multi tenanted commercial
premises, industrial or warehouse space, hotels, land acquisition,Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Fourth Amendment Directions,
2026
development, and construction, etc.). Exposure would also
include non-fund based (NFB) limits
ii. Exposure to Real Estate Investment Trusts (REITs)
iii. Other Commercial Real Estate
………………………………
4. These Directions shall come into force from July 1, 2026, or an earlier date if the
directions contained in the Reserve Bank of India (Commercial Banks – Credit
Facilities) Second Amendment Directions, 2026 are adopted by a bank in entirety.
(Vaibhav Chaturvedi)
Chief General Manager