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), contains the Second Amendment Directions, 2026, to the "Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025". It mandates revised disclosure requirements for commercial banks regarding exposures to related parties. The amendments become effective April 1, 2026, though banks may choose to implement them earlier. **Key Points / Main Content** * **Amendment to Disclosure Requirements:** * The directions modify Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’ of the original directions. * A new sub-sub paragraph (ix) is inserted under sub-paragraph 10(5) on 'Exposures' to include 'Exposures to 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. * **Reporting Table for Related Party Exposures:** The following details must be disclosed in the specified format (amount in ₹ crore): * **A. Loans to Related Parties** * 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 as on 31st March * Aggregate value of outstanding loans to related parties categorized as Non-Performing Assets as on 31st March * Amount of provisions held in respect of loans to related parties as on 31st March * **B. Contracts and Arrangements involving Related Parties** * 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 come into force from April 1, 2026. Banks have the option to implement them before this date. **Impact Analysis** **Stakeholder: Commercial Banks** * **Impact:** Commercial banks are required to comply with the new disclosure requirements concerning exposures to related parties. This involves tracking and reporting the specified data in their financial statements. * **Action Required:** Banks must update their reporting systems and processes to capture and accurately disclose the required information on related party exposures. They should prepare to implement the changes by April 1, 2026, or earlier if they choose.

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