The Reserve Bank of India issued revised Third Amendment Directions updating the 2025 framework on commercial banks’ financial statement presentation and disclosures, replacing the existing exposure disclosure with a new, structured table for “Exposure to Capital Markets” in the notes to accounts. The revised amendments supersede the earlier Third Amendment Directions issued on February 13, 2026. The amended disclosure requires banks to report capital market exposure (amount in INR crore, current year and previous year) across specified components, including direct investments in equity and preference shares and certain convertible instruments and fund units, lending to individuals for investing in shares and similar instruments, advances where such instruments are taken as primary security or collateral, credit facilities to capital market intermediaries, acquisition finance (including specified sub-items), financing to non-debt mutual fund schemes, bridge finance for equity contributions and own-funds requirements, underwriting commitments linked to acquisition finance or non-debt mutual fund units, irrevocable payment commitments issued by custodian banks, and trade exposures arising from clearing member activity including funded initial margins. The table is to be computed in line with the Reserve Bank of India (Commercial Banks – Concentration Risk Management) Directions, 2025 read with the Reserve Bank of India (Commercial Banks – Credit Facilities) Directions, 2025. The revised amendments take effect from the date a bank chooses to implement the Reserve Bank of India (Commercial Banks – Credit Facilities) Amendment Directions, 2026 (Revised) dated March 30, 2026, or from July 1, 2026, whichever is earlier.
Reserve Bank of India 2026-03-30
Reserve Bank of India revises commercial bank financial statement disclosures to require detailed reporting of capital market exposures
The Reserve Bank of India has revised the 2025 framework on commercial banks’ financial statement presentation and disclosures, replacing the existing exposure disclosure with a structured “Exposure to Capital Markets” table in the notes to accounts. Banks must report capital market exposures by specified components, including equity and convertible instruments, lending for share investments, credit to intermediaries, acquisition finance, financing to non-debt mutual fund schemes, bridge finance, underwriting commitments, irrevocable payment commitments and certain trade exposures, computed in line with the 2025 concentration risk and credit facilities directions. The amendments apply from the earlier of a bank’s implementation of the 2026 credit facilities amendment directions or 1 July 2026.