**Executive Summary**
This document outlines the Reserve Bank of India's (RBI) Amendment Directions, 2026, concerning financial statement presentation and disclosures for Small Finance Banks (SFBs). These directions, issued on January 05, 2026, amend the RBI’s 2025 Directions on the same subject, and are effective from April 1, 2026. The changes mandate specific disclosures regarding exposures to related parties.
**Key Points / Main Content**
* **Amendment to Disclosure Requirements:**
* A new sub-paragraph (ix) is added under sub-paragraph 10(5) on ‘Exposures' in Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’.
* **Disclosure of Exposures to Related Parties:**
* SFBs must disclose details of exposures to related parties, as defined in the RBI's Credit Risk Management Directions, 2025, in a tabular format.
* The table requires disclosure of:
* 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 (SMA) and Non-Performing Assets (NPA) 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 may choose to implement the amendments earlier.
**Impact Analysis**
**Stakeholder: Small Finance Banks (SFBs)**
* **Impact:** SFBs are required to modify their financial statement presentation and disclosures to include the new requirements regarding exposures to related parties.
* **Action Required:** SFBs must ensure their financial reporting systems are updated to capture and disclose the required information as per the provided table. They must comply by April 1, 2026, or an earlier date if they choose.
Key Entities Referenced
Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) – Amendment Directions, 2026: The primary subject, defining amendments to financial statement presentation and disclosure requirements for Small Finance Banks.
Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The original directions document that is being amended by the 2026 amendment directions.
Reserve Bank of India (Small Finance Banks – Credit Risk Management) – Amendment Directions, 2026: Directions related to credit risk management in small finance banks, relevant to the context of related party exposures.
Banking Regulation Act, 1949: The Act that provides the legal basis for the Reserve Bank of India's powers in issuing these directions.
Small Finance Banks: The type of financial institution to which these directions apply.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/182
DOR.CRE.REC.383/21.04.018/2025-26 January 05, 2026
Reserve Bank of India (Small Finance Banks – Financial Statements:
Presentation and Disclosures) – Amendment Directions, 2026
Please refer to Reserve Bank of India (Small Finance 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 (Small
Finance 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:
3(1) In Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’, a new
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
(Small Finance 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 Parties
1 Aggregate value of loans sanctioned to related
parties during the yearReserve Bank of India (Small Finance Banks – Financial Statements:
Presentation and Disclosures) – Amendment Directions, 2026
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