**Executive Summary**
This document contains the Reserve Bank of India's (RBI) Amendment Directions, 2026, pertaining to financial statement presentation and disclosures for Small Finance Banks (SFBs). These directions, issued on January 5, 2026, modify the existing directions of 2025 and mandate new disclosures related to exposures to related parties. The amendments are effective from April 1, 2026, though SFBs can implement them earlier.
**Key Points / Main Content**
* **Amendment to Disclosure Requirements:**
* A new sub-paragraph (ix) is inserted under sub-paragraph 10(5) on ‘Exposures' in Chapter-III ('Disclosure in Financial Statements – Notes to Accounts') to add disclosure requirements for exposures to related parties.
* **Related Party Exposure Disclosure Table:**
* SFBs must disclose details of exposures to related parties as defined in RBI's Credit Risk Management Directions, 2025, according to a prescribed table.
* The table requires reporting of:
* Aggregate value of loans sanctioned to related parties during the year.
* Aggregate value of outstanding loans to related parties as on March 31st.
* Aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on March 31st.
* Aggregate value of outstanding loans to related parties categorized as Special Mention Accounts and Non-Performing Assets as on March 31st.
* Amount of provisions held in respect of loans to related parties as on March 31st.
* 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 March 31st.
* **Effective Date:**
* The amendments are effective from April 1, 2026.
* SFBs can choose to implement the amendments earlier.
**Impact Analysis**
**Stakeholder: Small Finance Banks (SFBs)**
* **Impact:** SFBs will be required to enhance their financial reporting processes to include the new disclosures related to exposures to related parties. This may require changes to data collection, analysis, and reporting systems.
* **Action Required:** SFBs must update their financial statement presentation and disclosure practices to comply with the new directions, effective April 1, 2026. They may also choose to implement the changes earlier.
Key Entities Referenced
Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) – Amendment Directions, 2026: The primary subject of the document; directions issued by the Reserve Bank of India amending the 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 Directions which are being amended by this notification
Banking Regulation Act, 1949: Act that confers powers on the Reserve Bank of India used to issue these directions.
Reserve Bank of India: The regulator issuing the amendment directions.
Reserve Bank of India (Small Finance Banks – Credit Risk Management) – Amendment Directions, 2026: A related set of directions whose issuance led to the review prompting these amendment directions.
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