Home › Circulars › RBI/2025-26/181

RBI mandates related party exposure disclosure in bank financials

Current · Source: Reserve Bank of India · RBI/2025-26/181 · issued 05 Jan 2026 · ~2 min read
Quick answerFrom April 1, 2026, banks must disclose loans and contracts with related parties in a new table under Notes to Accounts. This follows the Credit Risk Management Directions and aims to enhance transparency on connected lending.
The rule, in the simplest words
How it plays out — a real example

A payments & clearing officer in Indore is updating the bank's annual report. She adds a new table showing that loans to the bank's directors and their companies total ₹50 crore, which is 2% of all loans, with no bad loans and ₹1 crore set aside for possible losses. She also lists a contract to rent office space from a director's firm for ₹5 crore.

What changed

RBI inserted a new sub-sub paragraph (ix) under paragraph 10(5) on 'Exposures' in the Financial Statements Directions. Banks must now disclose aggregate loans to related parties, their proportion to total credit exposure, SMA/NPA classification, provisions held, and contracts/arrangements with related parties in a prescribed table format.

What it means for you

Banks will need to track and report granular data on related party exposures, including loans and contracts, separately in their annual financial statements. This increases transparency and may require system upgrades to capture and aggregate this data accurately. Lenders must ensure compliance by the effective date or earlier if they choose early adoption.

What you must do

Who it affects

All commercial banks in India, Finance and accounting departments, Compliance and risk management teams, Auditors and board committees

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the effective date for these new disclosure requirements?

The amendments come into force from April 1, 2026. Banks may choose to implement them earlier in entirety.

What specific data must be disclosed for related party loans?

Banks must disclose aggregate value of loans sanctioned during the year, outstanding loans as on March 31, their proportion to total credit exposure, SMA/NPA classification, and provisions held.

Does this apply to contracts and arrangements with related parties as well?

Yes, banks must also disclose the aggregate value of contracts and arrangements awarded to related parties during the year and outstanding as on March 31.

📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 234 kb ) Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026 RBI/2025-26/181 DOR.CRE.REC.382/21.04.018/2025-26 January 05, 2026 Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026 Please refer to Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025 (hereinafter referred to as ‘the Directions’). 2. On a review, consequent to the issuance of the Reserve Bank of India (Commercial Banks – Credit Risk Management) – Amendment Directions, 2026 , and in exercise of the powers conferred by the sections 21 and 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues the Amendment Directions hereinafter specified. 3. The Amendment Directions modifies the Directions as under: 3(1) In Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’, a new sub-sub paragraph (ix) shall be inserted under sub-paragraph 10(5) on ‘Exposures’, as given below: 10(5)(ix) Exposures to Related Parties Details of exposures to related parties as defined in Reserve Bank of India (Commercial Banks – Credit Risk Management) Directions, 2025 shall be disclosed as per the following table: (Amount in ₹ crore) Sl No. Particulars Previous Year Current Year A. Loans to Related Parties 1 Aggregate value of loans sanctioned to related parties during the year 2 Aggregate value of outstanding loans to related parties as on 31st March 3 Aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on 31st March 4 Aggregate value of outstanding loans to related parties which are categorized as: (i) Special Mention Accounts as on 31st March (ii) Non-Performing Assets as on 31st March 5 Amount of provisions held in respect of loans to related parties as on 31st March B. Contracts and Arrangements involving Related Parties 6 Aggregate value of contracts and arrangements awarded to related parties during the year 7 Aggregate value of outstanding contracts and arrangements involving related parties as on 31st March 4. The above amendments shall come into force from April 1, 2026 . Banks may however decide to implement the amendments in entirety from an earlier date. Vaibhav Chaturvedi (Chief General Manager) 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2025-26/181 · issued 05 Jan 2026. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💰 Credit
  • Set up systems to capture aggregate loan values, SMA/NPA status, provisions, and contract values for related parties.
📜 Compliance
  • Update your financial reporting templates to include the new related party exposure disclosure table.
  • Identify and tag all related parties as per the Credit Risk Management Directions, 2025.
  • Train finance and compliance teams on the new disclosure requirements ahead of April 1, 2026.
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 in India, Finance and accounting departments, Compliance and risk management teams, Auditors and board committees), your first concrete step on “RBI mandates related party exposure disclosure in bank financials” is: “Update your financial reporting templates to include the new related party exposure disclosure table.” (RBI issued this 05 Jan 2026).

  1. Circular: RBI/2025-26/181 -- RBI mandates related party exposure disclosure in bank financials
  2. Issued: 05 Jan 2026
  3. Action required: Update your financial reporting templates to include the new related party exposure disclosure table.
  4. Action required: Identify and tag all related parties as per the Credit Risk Management Directions, 2025.
  5. Action required: Set up systems to capture aggregate loan values, SMA/NPA status, provisions, and contract values for related parties.
  6. Action required: Train finance and compliance teams on the new disclosure requirements ahead of April 1, 2026.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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

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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=13257&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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