**Executive Summary**
This document, issued by the Reserve Bank of India (RBI) on January 05, 2026, details the Second Amendment Directions, 2026, concerning financial statement presentation and disclosures for commercial banks. It modifies the existing disclosure norms for exposures to related parties. The amendments come into force on April 1, 2026, although banks can implement them earlier.
**Key Points / Main Content**
* **Amendment Scope:**
* Modifies existing guidelines related to the disclosure of financial statements.
* Specifically, it amends Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts', inserting a new sub-sub paragraph (ix) under sub-paragraph 10(5) on 'Exposures'.
* Concerns disclosures related to exposures to related parties as defined in the Reserve Bank of India (Commercial Banks – Credit Risk Management) Directions, 2025.
* **Disclosure Requirements (Loans to Related Parties):**
* The aggregate value of loans sanctioned to related parties during the year.
* The aggregate value of outstanding loans to related parties as on 31st March.
* The aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on 31st March.
* The aggregate value of outstanding loans to related parties categorized as Special Mention Accounts as on 31st March.
* The aggregate value of outstanding loans to related parties categorized as Non-Performing Assets as on 31st March.
* The amount of provisions held in respect of loans to related parties as on 31st March.
* **Disclosure Requirements (Contracts and Arrangements):**
* The aggregate value of contracts and arrangements awarded to related parties during the year.
* The aggregate value of outstanding contracts and arrangements involving related parties as on 31st March.
* **Effective Date:**
* The amendments come into force from April 1, 2026.
* Banks have the option to implement these amendments before the effective date.
**Impact Analysis**
**Commercial Banks**
* **Impact:** Required to comply with the new disclosure requirements for financial statements related to exposures to related parties.
* **Action Required:** Update financial reporting processes and systems to accurately capture and disclose the information as per the new guidelines. Can choose to implement the changes before April 1, 2026.
Key Entities Referenced
Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026: The primary policy document being issued by the Reserve Bank of India, amending earlier directions on financial statement presentation and disclosures for commercial banks.
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025: The original directions that are being amended by the Second Amendment Directions, 2026.
Reserve Bank of India: The regulatory body issuing the directions and empowered to regulate banks.
Reserve Bank of India (Commercial Banks – Credit Risk Management) – Amendment Directions, 2026: Amendment Directions concerning credit risk management in commercial banks which are related to this circular.
Banking Regulation Act, 1949: The act which gives powers to Reserve Bank of India and enables the regulations.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/181
DOR.CRE.REC.382/21.04.018/2025-26 January 05, 2026
Reserve Bank of India (Commercial Banks – Financial Statements:
Presentation and Disclosures) – Second Amendment Directions, 2026
Please refer to 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 the Reserve Bank of India
(Commercial Banks – Credit Risk Management) – Amendment Directions, 2026, and
in exercise of the powers conferred by the sections 21 and 35A of the Banking
Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of
India (hereinafter called 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 Directions as under:
3(1) In Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’, a new
sub-sub paragraph (ix) shall be inserted under sub-paragraph 10(5) on ‘Exposures’,
as given below:
10(5)(ix) Exposures to Related Parties
Details of exposures to related parties as defined in Reserve Bank of India
(Commercial Banks – Credit Risk Management) Directions, 2025 shall be
disclosed as per the following table:
(Amount in ₹ crore)
Sl Particulars Previous Current
No.
Year Year
A. Loans to Related PartiesReserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions,
2026
1 Aggregate value of loans sanctioned to related
parties during the year
2 Aggregate value of outstanding loans to related
parties as on 31st March
3 Aggregate value of outstanding loans to related
parties as a proportion of total credit exposure as
on 31st March
4 Aggregate value of outstanding loans to related
parties which are categorized as:
(i) Special Mention Accounts as on 31st March
(ii) Non-Performing Assets as on 31st March
5 Amount of provisions held in respect of loans to
related parties as on 31st March
B. Contracts and Arrangements involving Related Parties
6 Aggregate value of contracts and arrangements
awarded to related parties during the year
7 Aggregate value of outstanding contracts and
arrangements involving related parties as on 31st
March
4. The above amendments shall come into force from April 1, 2026. Banks may
however decide to implement the amendments in entirety from an earlier date.
Vaibhav Chaturvedi
(Chief General Manager)
2