**Executive Summary**
This document, issued by the Reserve Bank of India on January 5, 2026, contains Amendment Directions, 2026 regarding the financial statements (presentation and disclosures) of Regional Rural Banks (RRBs). The amendment modifies the "Disclosure in Financial Statements – Notes to Accounts" section and comes into force on April 1, 2026. Banks have the option to implement these changes earlier.
**Key Points / Main Content**
* **Amendment:**
* A new sub-sub paragraph (ix) is inserted under sub-paragraph 10(5) on ‘Exposures’ in Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’.
* The new sub-sub paragraph is titled "Exposures to Related Parties".
* **Disclosure Requirements (Exposures to Related Parties):**
* Details of exposures to related parties, as defined in Reserve Bank of India (Regional Rural Banks – Credit Risk Management) Directions, 2025, must be disclosed.
* The disclosure must follow a prescribed table format, with previous and current year data (amount in ₹ crore).
* The table includes the following items:
* 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 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.
* 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 come into force from April 1, 2026.
* Banks may implement the amendments in entirety from an earlier date.
**Impact Analysis**
**Regional Rural Banks (RRBs)**
* **Impact:** RRBs must now include additional disclosures related to exposures to related parties in their financial statements.
* **Action Required:** RRBs must update their financial reporting processes and systems to capture and disclose the required information in the specified format, starting from April 1, 2026, or earlier if they choose.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for issuing the amendment directions.
Banking Regulation Act, 1949: The act that empowers the Reserve Bank of India to issue the directions.
Reserve Bank of India (Regional Rural Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The principal directions being amended.
Reserve Bank of India (Regional Rural Banks – Credit Risk Management) Amendment Directions, 2026: The amendment directions specifying changes to disclosure requirements for regional rural banks.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/184
DOR.CRE.REC.384/21-04-018/2025-26 January 05, 2026
Reserve Bank of India (Regional Rural Banks – Financial Statements:
Presentation and Disclosures) – Amendment Directions, 2026
Please refer to Reserve Bank of India (Regional Rural Banks - 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 (Regional
Rural Banks – Credit Risk Management) – Amendment Directions, 2026, and in
exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation
Act, 1949 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:
(1) In Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’, a new sub-
sub paragraph (ix) shall be inserted under sub-paragraph 10(5) on ‘Exposures’, as
given below:
10(5)(ix) Exposures to Related Parties
Details of exposures to related parties as defined in Reserve Bank of India
(Regional Rural Banks – 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 (Regional Rural Banks – Credit Risk Management) – Amendment Directions, 2025
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. Banks may
however decide to implement the amendments in entirety from an earlier date.
Vaibhav Chaturvedi
(Chief General Manager)
2