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

**Executive Summary** This document, issued by the Reserve Bank of India (RBI) on February 13, 2026, outlines the Third Amendment Directions, 2026, to the Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025. The amendments introduce modifications to the disclosure of 'Exposures' in financial statements, specifically related to capital market exposures. These amendments will 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. **Key Points / Main Content** * **Amendment to Disclosure of Exposures:** * Sub-paragraph 10(5)(ii) of the Directions is deleted. * A new sub-paragraph (iia) is inserted after sub-paragraph 10(5)(ii), detailing "Exposure to Capital Markets." * **Table of Capital Market Exposures:** * A table is introduced, requiring disclosure of "Exposure to Capital Markets". * This table requires reporting on: * Direct investments in equity and preference shares, convertible bonds and 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 and debentures, and units of non-debt mutual fund schemes. * Advances for any other purposes where shares or convertible bonds or 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 or 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 (with breakdown for financing by overseas branches of Indian banks and bridge finance for meeting own funds requirements 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 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. * The table should report figures for both the current and previous years (Amount in ₹ crore). * **Computation of Capital Market Exposure:** * The capital market exposure reported in the table 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 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. **Impact Analysis** **Commercial Banks:** * **Impact:** Commercial banks are required to comply with the new disclosure requirements related to capital market exposures in their financial statements. This includes reporting detailed information as per the prescribed table. * **Action Required:** Banks need to update their financial reporting systems and processes to incorporate the changes outlined in the amendment directions, ensuring accurate and comprehensive disclosure of capital market exposures. They must decide 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