The Reserve Bank of India issued amendment directions updating how Regional Rural Banks (RRBs) present and disclose information in their financial statements, introducing a new mandatory note on exposures to related parties. The new disclosure requires RRBs to report, in INR crore for the previous and current year, aggregate values of loans to related parties (sanctioned during the year, outstanding as at 31 March, and outstanding as a proportion of total credit exposure), including a breakdown of outstanding related-party loans classified as Special Mention Accounts and Non-Performing Assets and the provisions held against them. It also adds disclosure of related-party contracts and arrangements, covering aggregate values awarded during the year and outstanding as at 31 March. Related parties are to be identified as defined under the Reserve Bank of India (Regional Rural Banks – Credit Risk Management) Directions, 2025. The amendments take effect from 1 April 2026, with banks permitted to implement them in full earlier.
Reserve Bank of India 2026-01-06
Reserve Bank of India adds related-party exposure disclosures to regional rural banks’ financial statements from April 2026
The Reserve Bank of India has amended disclosure requirements for Regional Rural Banks, mandating a new note on related-party exposures in financial statements, effective 1 April 2026. The note requires detailed reporting of loans and contracts with related parties, including classifications and provisions, with early implementation permitted.