**Executive Summary**
The Reserve Bank of India (RBI) issued amendment directions on January 05, 2026, to the Reserve Bank of India (Rural Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025. These amendments modify the disclosure requirements in financial statements, specifically regarding exposures to related parties. The amendments come into force from April 1, 2026, but banks can implement them earlier.
**Key Points / Main Content**
* **Amendment Scope:** Modifies the disclosure requirements under 'Disclosure in Financial Statements – Notes to Accounts' for Rural Co-operative Banks.
* **New Disclosure Requirement: Exposures to Related Parties**
* A new sub-paragraph (viii) is inserted under sub-paragraph 10(5) on Exposures.
* Requires disclosure of details of exposures to related parties as defined in the Reserve Bank of India (Rural Co-operative Banks – Credit Risk Management) Directions, 2025.
* Disclosure to be made as per the table format.
* **Disclosure Table Requirements:**
* Disclose "Loans to Related Parties" in Rupees crore in the table format provided.
* Disclose "Contracts and Arrangements Involving Related Parties" in Rupees crore in the table format provided.
* **Effective Date:** The amendments come into force from April 1, 2026.
* **Early Implementation:** Banks may choose to implement the amendments earlier than April 1, 2026.
**Impact Analysis**
**Stakeholder: Rural Co-operative Banks**
* **Impact:** Changes the financial statement disclosure requirements. Requires new data gathering and reporting processes related to exposures to related parties.
* **Action Required:** Implement the new disclosure requirements for exposures to related parties in their financial statements, effective from April 1, 2026, or an earlier date if desired. Update internal systems and processes to capture and report the required information.
Key Entities Referenced
Reserve Bank of India (Rural Co-operative Banks – Financial Statements: Presentation and Disclosures) – Amendment Directions, 2026: Primary subject of the notification; amends the directions related to financial statements, presentation and disclosures for rural co-operative banks.
Reserve Bank of India (Rural Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The Directions that are being amended by the current notification.
Reserve Bank of India (Rural Co-operative Banks – Credit Risk Management) – Amendment Directions, 2026: Directions related to credit risk management that triggered the current amendment to the financial statement disclosure requirements.
Banking Regulation Act, 1949: The Act under which the Reserve Bank exercises its powers.
Reserve Bank of India: Regulator issuing the directions.
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