**Executive Summary**
This document, issued by the Reserve Bank of India on January 05, 2026, provides Amendment Directions to the "Reserve Bank of India (Rural Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025". The amendment introduces new disclosure requirements for exposures to related parties. These amendments come into force from April 1, 2026, although banks may implement them earlier.
**Key Points / Main Content**
* **Amendment to Disclosure Requirements:**
* A new sub-sub paragraph (viii) is inserted under paragraph 10(5) of Chapter III, "Disclosure in Financial Statements – Notes to Accounts".
* The new paragraph mandates disclosure of "Exposures to Related Parties".
* The details of exposures to related parties, as defined in the "Reserve Bank of India (Rural Co-operative Banks – Credit Risk Management) Directions, 2025", must be disclosed in the financial statements.
* **Required Disclosures (Table):**
* **A. 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 as on 31st March.
* Aggregate value of outstanding loans to related parties categorized as Non-Performing Assets as on 31st March.
* Amount of provisions held in respect of loans to related parties as on 31st March.
* **B. 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 have the option to implement the amendments earlier.
**Impact Analysis**
**Stakeholder: Rural Co-operative Banks**
* **Impact:** Required to incorporate the new disclosure requirements related to exposures to related parties in their financial statements.
* **Action Required:** Update financial reporting processes to collect and disclose the specified data from April 1, 2026 (or earlier, if desired).
Key Entities Referenced
Reserve Bank of India (Rural Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The original RBI directions regarding financial statements of rural co-operative banks, which this document amends.
Reserve Bank of India (Rural Co-operative Banks – Financial Statements: Presentation and Disclosures) – Amendment Directions, 2026: The main subject; amendment directions issued by RBI regarding financial statement presentation and disclosures for rural co-operative banks.
Reserve Bank of India (Rural Co-operative Banks – Credit Risk Management) – Amendment Directions, 2026: RBI Directions regarding credit risk management of Rural Co-operative Banks.
Banking Regulation Act, 1949: The Act under which the RBI is exercising its powers to issue the amendment directions.
Reserve Bank of India: The regulator issuing the directions for Rural Co-operative Banks
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/186
DOR.CRE.REC.387/21-04-018/2025-26 January 05, 2026
Reserve Bank of India (Rural Co-operative Banks – Financial
Statements: Presentation and Disclosures) – Amendment Directions,
2026
Please refer to Reserve Bank of India (Rural Co-operative 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 (Rural Co-
operative Banks – Credit Risk Management) – Amendment Directions, 2026, and in
exercise of the powers conferred by the sections 35A read with Section 56 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 (viii) shall be inserted under sub-paragraph 10(5) on Exposures, as
given below:
10(5)(viii) Exposures to Related Parties
Details of exposures to related parties as defined in Reserve Bank of India
(Rural Co-operative 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 (Rural Co-operative Banks – 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. Banks may
however decide to implement the amendments in entirety from an earlier date.
Vaibhav Chaturvedi
(Chief General Manager)
2