**Executive Summary**
The Reserve Bank of India (RBI) issued amendment directions on January 5, 2026, regarding disclosures in financial statements of Non-Banking Financial Companies (NBFCs). These directions, referred to as Amendment Directions, 2026, modify the existing directions of 2025 and mandate additional disclosures related to exposures to related parties. The amendments come into force from April 1, 2026.
**Key Points / Main Content**
* **Amendment Overview:**
* The Amendment Directions modify the existing "Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025."
* A new sub-paragraph (9A) shall be inserted after sub-paragraph 21(9) in Chapter-III of the Directions, titled 'Disclosure in Financial Statements – Notes to Accounts'.
* **Disclosure Requirements: Exposures to Related Parties**
* NBFCs must disclose details of exposures to related parties as defined in "Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Directions, 2025".
* The following details must be disclosed in a table format, providing both previous year and current year figures:
* 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 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
* 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 come into force 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 to include specific details on exposures to related parties.
* These changes may require adjustments to reporting systems and data collection processes to ensure compliance with the new disclosure requirements.
* **Action Required:**
* NBFCs must review and update their financial reporting processes to comply with the new disclosure requirements by April 1, 2026, or an earlier date if they choose.
* They need to accurately collect and report the data related to exposures to related parties as outlined in the amendment directions.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, Amendment Directions, 2026: The primary subject of the document, outlining amendments to the disclosure requirements for non-banking financial companies.
Reserve Bank of India: The regulator issuing the directive and exercising authority under various acts.
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025: The original directions being amended by this document.
Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) – Amendment Directions, 2026: Referenced directions that triggered the review leading to these amendments.
Reserve Bank of India Act, 1934: One of the key legal foundations for the Reserve Bank of India's authority in issuing these directions.
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