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

**Executive Summary** This document, issued by the Reserve Bank of India (RBI) on January 05, 2026, pertains to the Second Amendment Directions, 2026, regarding the presentation and disclosures of financial statements for commercial banks. It amends the existing directions to include additional disclosure requirements related to exposures to related parties, effective from April 1, 2026, though banks may choose to implement it earlier. The document mandates additional disclosures related to exposures to related parties in the financial statements of commercial banks. **Key Points / Main Content** * **Amendment to Directions:** * The Amendment Directions modify existing directions related to financial statement presentations and disclosures. * These changes follow the issuance of the Reserve Bank of India (Commercial Banks – Credit Risk Management) – Amendment Directions, 2026. * **Disclosure in Financial Statements:** * A new sub-sub paragraph (ix) is inserted under sub-paragraph 10(5) in Chapter-III, ‘Disclosure in Financial Statements – Notes to Accounts', focusing on 'Exposures.' * This new paragraph is titled "10(5)(ix) Exposures to Related Parties." * **Disclosure Requirements for Related Parties:** * Details of exposures to related parties, as defined in Reserve Bank of India (Commercial Banks – Credit Risk Management) Directions, 2025, must be disclosed. * The disclosure should follow a specified table format (Amount in ₹ crore) with "Previous Year" and "Current Year" columns, detailing: * Aggregate value of loans sanctioned to related parties during the year * Aggregate value of outstanding loans to related parties as on 31st March * Aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on 31st March * Aggregate value of outstanding loans to related parties categorized as Special Mention Accounts and Non-Performing Assets as on 31st March * Amount of provisions held in respect of loans to related parties as on 31st March * Aggregate value of contracts and arrangements awarded to related parties during the year * Aggregate value of outstanding contracts and arrangements involving related parties as on 31st March * **Effective Date:** * The amendments are effective from April 1, 2026. * Banks have the option to implement the amendments in entirety from an earlier date. **Impact Analysis** **Stakeholder: Commercial Banks** * **Impact:** Commercial banks are required to modify their financial statement presentations to include the newly mandated disclosures related to exposures to related parties. * **Action Required:** Banks must prepare to collect and report the required data related to loans, contracts, and arrangements involving related parties. They need to update their reporting systems to accommodate these new disclosures and decide on whether to implement the new requirements before the effective date of April 1, 2026.

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