**Executive Summary**
The Reserve Bank of India issued the Third Amendment Directions, 2026, on February 13, 2026, modifying the "Financial Statements: Presentation and Disclosures) Directions, 2025". These amendments relate to the disclosure of "Exposure to Capital Markets" in the financial statements of commercial banks. The amendments will be effective from the date a bank decides to implement the provisions of the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 or from April 1, 2026, whichever is earlier.
**Key Points / Main Content**
* **Modification of Directions:** The Amendment Directions modify the "Exposures" section of "Chapter-III Disclosure in Financial Statements – Notes to Accounts" of the original Directions.
* **Deletion and Insertion:** Sub-paragraph 10(5)(ii) of the Directions is deleted, and a new sub-paragraph (iia) related to "Exposure to Capital Markets" is inserted.
* **Disclosure Table:** A new table is introduced, requiring disclosure of the following items related to Capital Market Exposure:
* Direct investment in equity and preference shares; convertible bonds; convertible debentures; units of non-debt mutual fund schemes; units of REITs and InvITs and units of Alternative Investment Funds (AIFs)
* Advances to individuals for investment in shares (including IPOs/FPOs/ESOPs), convertible bonds, convertible debentures, and units of non-debt mutual fund schemes
* Advances for any other purposes where shares or convertible bonds or convertible debentures or units of non-debt mutual fund schemes are taken as primary security
* Advances for any other purposes to the extent secured by collateral of shares, convertible bonds, convertible debentures or units of non-debt mutual fund schemes, where the advances are extended on the principal strength of such collateral
* All credit facilities to Capital Market Intermediaries (CMIs)
* Acquisition finance
* Out of (vi) acquisition finance by overseas branches of Indian banks
* Out of (vi) Bridge Finance for meeting own funds requirement of acquiring companies
* Financing to non-debt mutual fund schemes
* Bridge finance to companies for meeting upfront contribution to the equity of new companies being set up
* Underwriting commitments taken up by the banks in respect of primary issue of shares or convertible bonds or convertible debentures or bonds where end use is acquisition finance or units of non-debt mutual fund schemes
* Irrevocable Payment Commitments issued by custodian banks on behalf of its clients in favour of clearing corporations of stock exchanges
* Trade exposures of a bank, which is acting as a clearing member in equity derivative and commodity derivative transactions, to its client, including funded initial margins placed on behalf of clients, where permissible
* **Reporting:** The capital market exposure reported shall be computed in terms of Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025 read with Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025.
* **Effective Date:** The amendments come into force when a bank decides to implement Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 or from April 1, 2026, whichever is earlier.
**Impact Analysis**
**Stakeholder: Commercial Banks**
**Impact:** Commercial banks are now required to disclose detailed information about their exposure to capital markets in their financial statements according to the new table format.
**Action Required:** Commercial banks must update their financial reporting processes to comply with the new disclosure requirements and implement Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 to comply with the new amendments.
Key Entities Referenced
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025: The original directions which are being amended by this circular
Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026: Directions impacting the issuance of the amendment.
Banking Regulation Act, 1949: The Act providing the legal basis for the powers exercised in the circular.
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) – Third Amendment Directions, 2026: The third amendment to the Directions concerning financial statements presentation and disclosures for commercial banks.
Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025: Directions which must be read along with the mentioned directions.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
_________________________ ______________________
www.rbi.org.in
RBI/2025-26/214
DOR.CRE.REC.405/21.04.018/2025-26 February 13, 2026
Reserve Bank of India (Commercial Banks – Financial Statements:
Presentation and Disclosures) – Third 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 Facilities) 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 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 modify the Directions as under:
3(1) In paragraph 10(5) titled ‘Exposures’ of ‘Chapter-III Disclosure in Financial
Statements – Notes to Accounts’ of the Directions, the following modifications
shall be effected:
3(1)(i) Sub-paragraph 10(5)(ii) shall be deleted.
3(1)(ii) After sub-paragraph 10(5)(ii),the following new sub- paragraph (iia) shall be
inserted:
(iia) Exposure to Capital Markets
(Amount in ₹ crore)
Sr. No. Particulars Current Previous
Year Year
(i) Direct investment in equity and preference shares;
convertible bonds; convertible debentures; units of
non-debt mutual fund schemes; units of REITs and
विवियमि विभाग, केंद्रीय कायाालय, केंद्रीय कायाालय भिि, 12िी/ीं 13िी ींमींव़िल, शहीद भगत व ींह मागा, फोर्ा, म ींबई - 400001
र्ेलीफोि/ Tel No: 22661602, 22601000 फैक्स/ Fax No: 022-2270 5691
Department of Regulation, Central Office, Central Office Building, 12th/ 13th Floor, Shahid Bhagat Singh Marg, Fort, Mumbai – 400001
हहदिं ी आसान ह,ैं इसका प्रयोग बड़ाइएSr. No. Particulars Current Previous
Year Year
InvITs and units of Alternative Investment Funds
(AIFs)
(ii) Advances to individuals for investment in shares
(including IPOs/FPOs/ESOPs), convertible bonds,
convertible debentures, and units of non-debt
mutual fund schemes
(iii) Advances for any other purposes where shares or
convertible bonds or convertible debentures or units
of non-debt mutual fund schemes are taken as
primary security
(iv) Advances for any other purposes to the extent
secured by collateral of shares, convertible bonds,
convertible debentures or units of non-debt mutual
fund schemes, where the advances are extended on
the principal strength of such collateral
(v) All credit facilities to Capital Market Intermediaries
(CMIs)
(vi) Acquisition finance
Out of (vi) acquisition finance by overseas branches
of Indian banks
Out of (vi) Bridge Finance for meeting own funds
requirement of acquiring companies
(vii) Financing to non-debt mutual fund schemes.
(viii) Bridge finance to companies for meeting upfront
contribution to the equity of new companies being
set up
(ix) Underwriting commitments taken up by the banks in
respect of primary issue of shares or convertible
bonds or convertible debentures or bonds where
end use is acquisition finance or units of non-debt
mutual fund schemes
(x) Irrevocable Payment Commitments issued by
custodian banks on behalf of its clients in favour of
clearing corporations of stock exchanges
(xi) Trade exposures of a bank, which is acting as a
clearing member in equity derivative and commodity
derivative transactions, to its client, including funded
initial margins placed on behalf of clients, where
permissible
Total exposure to capital market
2Note: The capital market exposure reported in the table above shall be
computed in terms of Reserve Bank of India (Commercial Banks -
Concentration Risk Management) Directions, 2025 read with Reserve Bank of
India (Commercial Banks – Credit Facilities) Directions, 2025.
4. The above amendments shall come into force from the date a bank decides to
implement the provisions of the Reserve Bank of India (Commercial Banks – Credit
Facilities) Amendment Directions, 2026 or from April 1, 2026, whichever is earlier.
Vaibhav Chaturvedi
(Chief General Manager)
3