The Reserve Bank of India issued amendments to its Directions on Non-Banking Financial Companies’ financial statement presentation and disclosures, adding a new note-to-accounts requirement for related-party exposure disclosures aligned to the NBFC credit risk management framework. The amendments insert a new sub-paragraph on “Exposures to Related Parties” in the disclosures chapter, requiring NBFCs to report (in INR crore, for both the previous year and current year) aggregate loans sanctioned to related parties during the year, outstanding related-party loans as at 31 March, related-party loans as a proportion of total credit exposure as at 31 March, the split of outstanding related-party loans classified as Special Mention Accounts and Non-Performing Assets as at 31 March, and provisions held against related-party loans as at 31 March. NBFCs must also disclose the aggregate value of contracts and arrangements awarded to related parties during the year and the outstanding value of such contracts and arrangements as at 31 March. The changes take effect from 1 April 2026, with an option for NBFCs to implement the amendments in full from an earlier date.

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