The Reserve Bank of India issued revised second-amendment directions to its 2025 framework on small finance banks’ financial statement presentation and disclosures, updating the notes-to-accounts exposure disclosures following changes to the small finance bank credit facilities regime. The revisions replace an existing exposure disclosure requirement with a new standardised table for reporting capital market exposures. In Chapter III (Notes to Accounts), paragraph 10(5) “Exposures”, sub-paragraph 10(5)(ii) is deleted and a new sub-paragraph requires disclosure (current and previous year, in INR crore) of “Exposure to Capital Markets” across specified components, including direct investments in equity and preference shares, convertible instruments, and units of non-debt mutual funds, REITs and InvITs and alternative investment funds; loans to individuals for investing in such instruments; advances where such instruments are primary security or are principal-strength collateral; all credit facilities to capital market intermediaries; financing to non-debt mutual fund schemes; loans for acquisition of promoters’ shares in infrastructure project companies; underwriting commitments; irrevocable payment commitments issued by custodian banks; and client trade exposures where the bank acts as a clearing member, plus a total. The exposure must be computed under the Small Finance Banks – Concentration Risk Management Directions, 2025 read with the Small Finance Banks – Credit Facilities Directions, 2025. The revised amendments take effect from the date a bank chooses to implement the Small Finance Banks – Credit Facilities Amendment Directions, 2026 (Revised) or from 1 July 2026, whichever is earlier, and supersede the earlier second-amendment directions issued on 13 February 2026.
Reserve Bank of India 2026-03-30
Reserve Bank of India updates small finance bank financial statement disclosures to add capital market exposure table
The Reserve Bank of India has revised its 2025 framework on small finance banks’ financial statement presentation and disclosures, replacing an existing exposure disclosure with a standardised table for reporting capital market exposures in the notes to accounts. The new disclosure, aligned with the Small Finance Banks – Concentration Risk Management Directions, 2025 and the Small Finance Banks – Credit Facilities Directions, 2025, takes effect from the earlier of a bank’s implementation of the Small Finance Banks – Credit Facilities Amendment Directions, 2026 (Revised) or 1 July 2026, and supersedes the 13 February 2026 second-amendment directions.