The Reserve Bank of India has amended its financial statement presentation and disclosure framework for rural co-operative banks to require new disclosures on exposures to related parties in the notes to accounts, aligned to the related-party definition under its rural co-operative banks credit risk management directions. The amendment inserts a new note under the existing disclosures on exposures, requiring banks to present (in INR crore, for the previous year and current year) aggregate loans sanctioned to related parties during the year, outstanding loans to related parties as at 31 March, the proportion of such outstanding loans to total credit exposure as at 31 March, a split of outstanding related-party loans classified as Special Mention Accounts and Non-Performing Assets, and provisions held against related-party loans as at 31 March. It also introduces disclosure of the aggregate value of contracts and arrangements awarded to related parties during the year and outstanding contracts and arrangements involving related parties as at 31 March. 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 rural co-operative banks’ financial statements
The Reserve Bank of India has revised its financial statement presentation and disclosure framework for rural co-operative banks, mandating new disclosures on related-party exposures in the notes to accounts, effective 1 April 2026. These include detailed reporting on loans, contracts, and arrangements with related parties, aligned with the rural co-operative banks credit risk management directions.