The Reserve Bank of India has issued amendments to its directions on Local Area Banks’ financial statement presentation and disclosures, adding a new Notes to Accounts requirement for disclosures on exposures to related parties. The new disclosure sits under the “Exposures” note and requires a tabular presentation (INR crore, previous year and current year) covering: aggregate value of loans sanctioned to related parties during the year; outstanding related party loans as at 31 March and as a proportion of total credit exposure; outstanding related party loans classified as Special Mention Accounts and Non-Performing Assets; provisions held against related party loans; and aggregate values for contracts and arrangements awarded to related parties during the year and outstanding as at 31 March. The amendments take effect from 1 April 2026, with an option for banks to implement earlier.
Reserve Bank of India 2026-01-05
Reserve Bank of India amends Local Area Banks financial statement disclosures to require reporting of related party exposures
The Reserve Bank of India has amended its directions on Local Area Banks' financial statement presentation and disclosures, introducing a new Notes to Accounts requirement for related party exposure disclosures effective from 1 April 2026, with an option for earlier implementation.