**Executive Summary**
The Reserve Bank of India issues Amendment Directions, effective April 1, 2026, to the "Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025". These amendments mandate additional disclosures related to exposures to related parties, aligning with existing guidelines on credit risk management. NBFCs can choose to implement these amendments before the effective date.
**Key Points / Main Content**
* **Amendment Overview:**
* Modifies the existing "Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025."
* Issued in response to the "Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) – Amendment Directions, 2026."
* **Disclosure Requirements (Exposures to Related Parties):**
* Inserts a new sub-paragraph (9A) under Chapter-III ('Disclosure in Financial Statements – Notes to Accounts').
* Requires the disclosure of details of exposures to related parties as defined in the "Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) Directions, 2025."
* Requires disclosure of the following items in a table format, with data for the previous and current year:
* 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 become effective from April 1, 2026.
* NBFCs have the option to implement the amendments earlier.
**Impact Analysis**
**Stakeholder: Non-Banking Financial Companies (NBFCs)**
* **Impact:** NBFCs must revise their financial statement disclosures to include the information on exposures to related parties as specified in the amendment directions.
* **Action Required:** NBFCs should review and update their financial reporting processes to comply with the new disclosure requirements, effective April 1, 2026, or earlier if they choose.
Key Entities Referenced
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, Amendment Directions, 2026: Amendment directions for non-banking financial companies related to presentation and disclosure of financial statements issued by RBI.
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025: The original directions that the 2026 Amendment Directions modify.
Reserve Bank of India (Non-Banking Financial Companies – Credit Risk Management) – Amendment Directions, 2026: Directions concerning credit risk management for non-banking financial companies, that prompted the review resulting in the Amendment Directions, 2026.
Reserve Bank of India Act, 1934: The act that provides RBI with the power to issue directions.
Reserve Bank of India: The regulator issuing the 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