**Executive Summary**
This document, issued by the Reserve Bank of India (RBI) on January 05, 2026, pertains to amendments in the disclosure requirements of financial statements for Regional Rural Banks (RRBs). These amendments, effective from April 1, 2026, relate to the disclosure of exposures to related parties. Banks may choose to implement the amendments earlier than the effective date.
**Key Points / Main Content**
* **Amendment to Disclosure Requirements:**
* Chapter-III of 'Disclosure in Financial Statements – Notes to Accounts' is amended.
* A new sub-sub paragraph (ix) is inserted under sub-paragraph 10(5) on ‘Exposures’.
* **Disclosure of Exposures to Related Parties:**
* Details of exposures to related parties, as defined in RBI (Regional Rural Banks – Credit Risk Management) Directions, 2025, must be disclosed.
* Disclosures are required as per a specified table format (Amount in ₹ crore).
* **Table Format for Disclosure:**
* The table requires disclosure of the following:
* 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 (i) Special Mention Accounts as on 31st March and (ii) 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.
* Banks can implement the amendments from an earlier date if they choose.
**Impact Analysis**
**Regional Rural Banks (RRBs)**
* **Impact:**
* RRBs must modify their financial statement disclosures to comply with the new requirements for related party exposures.
* **Action Required:**
* Implement the necessary changes to track and report the required data in the specified table format.
* Ensure compliance by the effective date of April 1, 2026 or earlier if desired.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the primary issuer of these directions.
Banking Regulation Act, 1949: Indian legislation that empowers the Reserve Bank of India to regulate the banking sector.
Reserve Bank of India (Regional Rural Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The original financial statements and disclosure directions for Regional Rural Banks.
Reserve Bank of India (Regional Rural Banks – Credit Risk Management) Amendment Directions, 2026: Amendment directions related to credit risk management for Regional Rural Banks.
Regional Rural Banks: The banking institutions to which this policy specifically applies.
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