**Executive Summary**
This document, issued by the Reserve Bank of India on January 05, 2026, outlines amendments to the "Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025." The amendments concern disclosures related to exposures to related parties. These amendments come into effect on April 1, 2026, but NBFCs have the option to adopt them earlier.
**Key Points / Main Content**
* **Amendment Focus:** Modifies disclosure requirements for Non-Banking Financial Companies (NBFCs) regarding exposures to related parties.
* **New Disclosure Requirement:** Adds a new sub-paragraph (9A) to Chapter-III, "Disclosure in Financial Statements – Notes to Accounts," after sub-paragraph 21(9).
* **Disclosure Details:** Requires NBFCs to disclose details of exposures to related parties as defined in the "Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Directions, 2025" according to a specified table.
* **Table Details:** The table requires disclosure of the following information:
* 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 and Non-Performing Assets as on 31st March.
* Amount of provisions held in respect of loans to related parties as on 31st March.
* 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 are effective from April 1, 2026. NBFCs have the option to implement the amendments earlier.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
* **Impact:** NBFCs are required to enhance their financial statement disclosures by providing detailed information about their exposures to related parties.
* **Action Required:** NBFCs must modify their reporting processes to comply with the new disclosure requirements, effective April 1, 2026, or earlier if they choose. They need to prepare to disclose the values of loans and contracts involving related parties, categorized by type and performance status, as of the reporting date.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, Amendment Directions, 2026: The primary policy document amending existing directions related to financial statement presentation and disclosures for Non-Banking Financial Companies.
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025: The existing directions that are being amended by the 2026 amendment directions.
Reserve Bank of India: The regulatory body issuing the directions.
Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) – Amendment Directions, 2026: Directions related to credit risk management for NBFCs, which led to the review necessitating the current amendment directions.
Non-Banking Financial Companies (NBFCs): The entities to which these directions apply.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/187
DOR.CRE.REC.388/21.04.018/2025-26 January 05, 2026
Reserve Bank of India (Non-Banking Financial Companies – Financial
Statements: Presentation and Disclosures) Directions, Amendment
Directions, 2026
Please refer to Reserve Bank of India (Non-Banking Financial Companies – 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 (Non-
Banking Financial Companies – Credit Risk Management) – Amendment Directions,
2026, and in exercise of the powers conferred by the 45JA, 45L and 45M of the
Reserve Bank of India Act, 1934; Sections 30A and 32 of the National Housing Bank
Act, 1987 and Section 6 of the Factoring Regulation Act, 2011 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-paragraph (9A) shall be inserted after sub-paragraph 21(9), as given below:
21(9A) Exposures to Related Parties
Details of exposures to related parties as defined in Reserve Bank of India
(Non-Banking Financial Companies – 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 (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) – 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. NBFCs may
however decide to implement the amendments in entirety from an earlier date.
Vaibhav Chaturvedi
(Chief General Manager)
2