The Reserve Bank of India has issued a sixth amendment to its 2025 directions on commercial banks’ financial statements, updating presentation and disclosure requirements after changes to the investment portfolio framework under the 2026 second amendment directions. The amendment takes effect from the date of issue and changes how banks present revenue reserves and disclose provisions for non-performing investments. The revised instructions define revenue reserve as any reserve other than capital reserve and clarify that reserves do not include amounts retained for depreciation, renewals, diminution in the value of assets, or known liabilities. Banks must also replace the existing disclosure under paragraph 10(3)(vi) with a table on the movement of provisions for non-performing investments, showing for the current and previous year in INR crore the opening balance, provisions made during the year, write-offs or write-backs of excess provisions, and the closing balance.
Reserve Bank of India2026-05-18
Reserve Bank of India revises commercial bank financial statement disclosures for revenue reserves and non-performing investments
The Reserve Bank of India has issued a sixth amendment to its 2025 directions on commercial banks’ financial statements, aligning presentation and disclosure requirements with recent changes to the investment portfolio framework. The amendment redefines revenue reserves and clarifies items excluded from reserves, and requires banks to disclose a tabular movement of provisions for non-performing investments for the current and previous year in INR crore.