Reserve Bank of India (Rural Co-operative Banks – Financial Statements: Presentation and Disclosures) – Amendment Directions, 2026

**Executive Summary** This document outlines amendment directions issued by the Reserve Bank of India (RBI) regarding financial statement disclosures for Rural Co-operative Banks. The amendments, effective from April 1, 2026, mandate specific disclosures of exposures to related parties as defined in the Rural Co-operative Banks – Credit Risk Management Directions, 2025. Banks may choose to implement the amendments before this date. **Key Points / Main Content** * **Amendment Focus:** Modifies disclosures in Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’ of existing directions. * **New Disclosure Requirement:** Insertion of a new sub-sub paragraph (viii) under sub-paragraph 10(5) on Exposures, specifically addressing "Exposures to Related Parties". * **Scope of Disclosure:** Requires details of exposures to related parties as defined in the Reserve Bank of India (Rural Co-operative Banks – Credit Risk Management) Directions, 2025. * **Reporting Format:** Disclosure to follow a table format including: * 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:** Amendments come into force from April 1, 2026. * **Early Adoption:** Banks may choose to implement the amendments in their entirety from an earlier date. **Impact Analysis** **Stakeholder: Rural Co-operative Banks** * **Impact:** Banks need to modify their financial statement reporting to comply with the new disclosure requirements regarding exposures to related parties. * **Action Required:** Banks must implement the amended disclosure requirements in their financial statements starting April 1, 2026, or earlier if they choose. They need to review their data collection and reporting processes to ensure accurate and timely disclosure of the required information.

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