Reserve Bank of India amends commercial bank financial statement disclosures to require a capital market exposure table effective by 1 April 2026

The Reserve Bank of India has issued the Third Amendment Directions, 2026 to its Commercial Banks – Financial Statements: Presentation and Disclosures Directions, 2025, revising the Notes to Accounts disclosure on exposures to introduce a dedicated disclosure for banks’ exposure to capital markets following changes to the Credit Facilities framework. The amendment deletes the existing sub-paragraph 10(5)(ii) and inserts a new sub-paragraph on “Exposure to Capital Markets”, requiring banks to disclose (in INR crore) current-year and previous-year amounts across specified categories including direct investments in equity and related instruments, lending for investment in shares and similar instruments, credit secured by such instruments, all credit facilities to capital market intermediaries, acquisition finance (with separate identification of certain overseas-branch and bridge finance components), financing to non-debt mutual fund schemes, certain bridge finance for equity contributions to new companies, underwriting commitments tied to primary issues where end use is acquisition finance, irrevocable payment commitments issued by custodian banks, and trade exposures as a clearing member including funded initial margins. The reported capital market exposure must be computed in line with the Commercial Banks – Concentration Risk Management Directions, 2025 read with the Commercial Banks – Credit Facilities Directions, 2025. The amendments take effect from the date a bank implements the Commercial Banks – Credit Facilities Amendment Directions, 2026 or from 1 April 2026, whichever is earlier.