Current · Source: Reserve Bank of India · RBI/2013-2014/647 · issued 18 Jun 2014 · ~2 min read
Quick answerRBI mandates banks to disclose sector-wise advances and NPAs in financial statements from FY2014-15, replacing earlier norms. This aims to improve transparency and active sector exposure management, especially for priority sectors.
The rule, in the simplest words
From the financial year 2014-15, banks must show how much loan money they gave to each industry (like farming, factories, shops, personal loans) in their yearly reports.
If a bank gives more than 10% of all loans to one small part of an industry (like 'wheat farming' inside 'farming'), they must list that small part separately.
This new rule replaces an older rule from March 2010 about showing bad loans (loans people don't pay back) by industry.
The rule helps banks watch out for putting too many loans in one industry, especially for priority sectors (important areas like small farmers).
How it plays out — a real example
An agri & priority-sector lending officer in Indore is preparing the bank's yearly financial report for 2014-15. She now has to list all loans given to the 'agriculture' sector, and if loans to 'wheat farmers' are more than 10% of all agriculture loans, she must show that as a separate line in the report. This helps her manager see if the bank is too focused on one type of farming.
What changed
From FY2014-15, banks must disclose sector-wise advances in 'Notes to Accounts' using a new format covering priority and non-priority sectors with sub-sectors where advances exceed 10% of that sector's total. This replaces the earlier disclosure requirements from the March 2010 circular on sector-wise NPAs.
What it means for you
Banks now need to provide granular data on advances and NPAs by sector, including sub-sectors like agriculture, industry, services, and personal loans. This enhances regulatory oversight and helps banks monitor concentration risks, especially in priority sector lending, aligning with the Nachiket Mor Committee's recommendations.
What you must do
Update financial statement templates to include the new sector-wise disclosure format from FY2014-15 onwards.
Ensure systems can capture and report outstanding advances and gross NPAs for each sector and sub-sector as specified.
Identify sub-sectors where advances exceed 10% of the sector total and prepare separate disclosure lines for them.
Train finance and compliance teams on the new disclosure requirements and the replacement of the 2010 circular's norms.
Who it affects
All commercial banks (excluding RRBs), Finance and compliance departments, Auditors and financial reporting teams
❓ Common questions
What sectors are covered in the new disclosure format?
The format covers Priority Sector (agriculture, industries eligible as priority sector, services, personal loans) and Non-Priority Sector (agriculture, industry, services, personal loans). Sub-sectors with advances over 10% of the sector total must be disclosed separately.
Does this circular replace any previous disclosure requirements?
Yes, it replaces the sector-wise NPA disclosure requirements from the March 15, 2010 circular (DBOD.BP.BC.No.79/21.04.018/2009-10) with the new format specified in the annex.
When do these new disclosure requirements take effect?
They are applicable from the financial year 2014-15 onwards, meaning banks must include the new disclosures in their financial statements for that year.
📜 Read the original circular — full text as issued by RBI
RBI/2013-2014/647
DBOD. No.BP.BC.121/21.04.018/2013-14
June 18, 2014
The Chairmen and Managing Directors / Chief Executive Officers of
all Commercial Banks (excluding Regional Rural Banks)
Dear Sir,
Disclosure of sector-wise advances
A reference is invited to paragraph 18 of the First Bi-Monthly Monetary Policy Statement 2014-15 announced on April 1, 2014 wherein it was proposed to prescribe certain additional disclosure requirements as per the recommendations of the Committee on Comprehensive Financial Services for Small Businesses and Low Income Households (Chairman: Dr. Nachiket Mor) to encourage banks to actively manage their exposures to various sectors, including priority sector.
2. In this regard, banks are advised to disclose sector-wise advances in the ‘Notes to Accounts’ to the financial statements as per the format given in the Annex from the financial year 2014-15 onwards. Accordingly, the disclosure requirements contained in the Annex under item “II. Sector wise NPAs” of our circular DBOD.BP.BC.No.79/21.04.018/2009-10 dated March 15, 2010 on ‘ Additional Disclosures by Banks in Notes to Accounts’ shall be replaced by the disclosure requirements specified herein.
Yours faithfully,
(Rajesh Verma)
Chief General Manager-in-charge
Annex
Sector-wise Advances
(Amounts in Rs.crore)
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-2014/647 · issued 18 Jun 2014. The plain-English explanation above is BankPulse’s own independent summary.
Ensure systems can capture and report outstanding advances and gross NPAs for each sector and sub-sector as specified.
📜 Compliance
Update financial statement templates to include the new sector-wise disclosure format from FY2014-15 onwards.
Identify sub-sectors where advances exceed 10% of the sector total and prepare separate disclosure lines for them.
Train finance and compliance teams on the new disclosure requirements and the replacement of the 2010 circular's norms.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All commercial banks (excluding RRBs), Finance and compliance departments, Auditors and financial reporting teams), your first concrete step on “Sector-wise Advance Disclosure Norms Tightened” is: “Update financial statement templates to include the new sector-wise disclosure format from FY2014-15 onwards.” (RBI issued this 18 Jun 2014).
Action required: Update financial statement templates to include the new sector-wise disclosure format from FY2014-15 onwards.
Action required: Ensure systems can capture and report outstanding advances and gross NPAs for each sector and sub-sector as specified.
Action required: Identify sub-sectors where advances exceed 10% of the sector total and prepare separate disclosure lines for them.
Action required: Train finance and compliance teams on the new disclosure requirements and the replacement of the 2010 circular's norms.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8946&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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