**Executive Summary**
This document, issued by the Reserve Bank of India (RBI) on January 05, 2026, pertains to Amendment Directions, 2026, for Non-Banking Financial Companies (NBFCs) concerning financial statement presentation and disclosures. It amends the existing directions on financial statements by introducing a new disclosure requirement related to exposures to related parties. The amendments are effective from April 1, 2026, although NBFCs may choose to implement them earlier.
**Key Points / Main Content**
* **Amendment to Disclosure Requirements:**
* A new sub-paragraph (9A), "Exposures to Related Parties," will be inserted after sub-paragraph 21(9) in Chapter-III 'Disclosure in Financial Statements – Notes to Accounts'.
* Details of exposures to related parties, as defined in the Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Directions, 2025, must be disclosed.
* **Disclosure Table:** The following information must be disclosed for related parties (amounts in ₹ crore):
* 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 which are categorized as:
* Special Mention Accounts as on 31st March
* Non-Performing Assets as on 31st March
* Amount of provisions held in respect of loans to related parties as on 31st March
* 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 are effective from April 1, 2026. NBFCs may implement the amendments in entirety from an earlier date.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
* **Impact:** NBFCs are required to modify their financial statement disclosures to include detailed information about exposures to related parties.
* **Action Required:** NBFCs must prepare to collect and report the required data on related party exposures and incorporate the new disclosure requirements into their financial statements by April 1, 2026, or earlier, if desired.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, Amendment Directions, 2026: Amendment directions issued by the Reserve Bank of India regarding presentation and disclosure of financial statements by Non-Banking Financial Companies.
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025: Original Directions that are being amended concerning the presentation and disclosures of financial statements by Non-Banking Financial Companies.
Reserve Bank of India: The central bank of India, the regulator issuing the directions and amendment.
Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) – Amendment Directions, 2026: Directions concerning the Credit Risk Management of Non-Banking Financial Companies.
Non-Banking Financial Companies: The entities to which this policy applies.
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