**Executive Summary**
This document outlines Amendment Directions, 2026 issued by the Reserve Bank of India (RBI) regarding financial statement presentations and disclosures for Small Finance Banks (SFBs). The amendments, effective April 1, 2026, modify disclosure requirements related to exposures to related parties, as defined by the RBI. Banks have the option to implement these amendments earlier than the effective date.
**Key Points / Main Content**
* **Amendment Overview:**
* Modifies the 'Disclosure in Financial Statements – Notes to Accounts' section of the existing Directions.
* Introduces a new sub-paragraph 10(5)(ix) under 'Exposures' specifically focusing on disclosures related to exposures to related parties.
* **Related Party Disclosure Requirements:**
* Details of exposures to related parties, as defined in *Reserve Bank of India (Small Finance Banks – Credit Risk Management) Directions, 2025,* must be disclosed according to a prescribed table.
* The table requires disclosure of the following for both the previous and current year (amount in ₹ crore):
* 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 (SMA) as on 31st March.
* Aggregate value of outstanding loans to related parties which are categorized as 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:**
* Amendments come into force from April 1, 2026.
* Banks can choose to implement the amendments earlier.
**Impact Analysis**
**Stakeholder:** Small Finance Banks (SFBs)
**Impact:** SFBs must incorporate the new disclosure requirements related to exposures to related parties in their financial statements. This will enhance transparency and provide more information about the bank's relationships with related entities.
**Action Required:** SFBs need to update their financial reporting processes to collect and present the data required by the amended directions. They should also decide whether to implement the changes before the April 1, 2026 deadline.
Key Entities Referenced
Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) – Amendment Directions, 2026: Amendment Directions issued by the Reserve Bank of India regarding financial statement presentation and disclosures for Small Finance Banks.
Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The original directions being amended by the 2026 Amendment Directions regarding financial statements presentation for Small Finance Banks.
Reserve Bank of India (Small Finance Banks – Credit Risk Management) – Amendment Directions, 2026: Amendment Directions issued by the Reserve Bank of India regarding credit risk management for Small Finance Banks.
Reserve Bank of India: The regulatory body issuing the directives.
Banking Regulation Act, 1949: The act under which the Reserve Bank of India derives its power to issue these 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