**Executive Summary**
This document, issued by the Reserve Bank of India on February 13, 2026, details the Third Amendment Directions, 2026 to the Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025. These amendments pertain to the disclosure of exposures in financial statements and will come into force when 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**
* **Amendment to Disclosure Requirements:**
* Paragraph 10(5) of the Directions, titled ‘Exposures' of ‘Chapter-III Disclosure in Financial Statements – Notes to Accounts', is modified.
* Sub-paragraph 10(5)(ii) is deleted.
* A new sub-paragraph (iia) regarding "Exposure to Capital Markets" is inserted with specific reporting requirements in terms of current and previous year's amounts in crore:
* Direct investment in equity and preference shares.
* Advances to individuals for investment in shares.
* Advances for any other purpose where shares are taken as primary security.
* Advances secured by collateral.
* All credit facilities to Capital Market Intermediaries.
* Acquisition finance and Bridge Finance.
* Financing to non-debt mutual fund schemes.
* Underwriting commitments.
* Irrevocable Payment Commitments.
* Trade exposures of a bank.
* **Capital Market Exposure Computation:**
* The capital market exposure shall be computed in terms of the Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025 read with the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025.
**Impact Analysis**
**Commercial Banks:**
* **Impact:** Banks must adhere to the revised disclosure requirements for financial statements and report detailed exposure to capital markets as specified in the new sub-paragraph (iia). They need to accurately compute their capital market exposure.
* **Action Required:** Implement the changes to reporting formats for financial statements and ensure compliance with the guidelines. The deadline depends on the bank's decision 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 Entities Referenced
Banking Regulation Act, 1949: Provides the legal framework for the regulation of banking companies in India.
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025: Directions issued by the RBI related to the presentation and disclosures of financial statements by commercial banks.
Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026: Amendment directions issued by RBI concerning credit facilities offered by commercial banks.
Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) – Third Amendment Directions, 2026: Amendment to the Reserve Bank of India Directions on Financial Statements impacting 'Exposures' of 'Chapter-III Disclosure in Financial Statements – Notes to Accounts'.
Reserve Bank of India (Commercial Banks - Concentration Risk Management) Directions, 2025: Directions issued by the RBI related to the management of concentration risk by commercial banks.
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