**Executive Summary**
This document outlines the Reserve Bank of India's (RBI) Fourth Amendment Directions, 2026 to the Commercial Banks – Financial Statements: Presentation and Disclosures Directions, 2025. The amendment modifies disclosure requirements for 'Exposure to real estate sector' under financial statements. The Directions come into force from July 1, 2026, but can be adopted earlier if a bank adopts the entirety of the Second Amendment Directions, 2026.
**Key Points / Main Content**
* **Amendment to Disclosure Requirements:**
* The amendment modifies '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'.
* The following categorization will be reported by banks.
* **Direct Exposure:**
* **Commercial Real Estate:**
* 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 would also include non-fund based (NFB) limits
* Exposure to Real Estate Investment Trusts (REITs)
* Other Commercial Real Estate.
* **Effective Date:**
* The directions shall come into force from July 1, 2026, or earlier 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**
**Commercial Banks:**
* **Impact:** Banks are required to modify their financial statement disclosures in accordance with the new Directions.
* **Action Required:** Banks must update their reporting processes and systems to comply with the revised disclosure requirements. They should prepare for implementation by July 1, 2026, or consider adopting the Second Amendment Directions, 2026, in their entirety for earlier compliance.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the primary regulator issuing the directions.
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Fourth Amendment Directions, 2026: The primary policy document containing amendments related to financial statements and disclosures for commercial banks.
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The original directions which are being amended by the Fourth Amendment Directions, 2026.
Banking Regulation Act, 1949: The act under which the Reserve Bank of India derives its powers to issue the Directions.
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