Home › Circulars › RBI/2025-26/184

RRB Financial Disclosure Amendment: Related Party Exposures

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Current · Source: Reserve Bank of India · RBI/2025-26/184 · issued 05 Jan 2026 · ~1 min read
Quick answerRBI mandates RRBs to disclose related party loan exposures and contracts in financial statements from April 1, 2026, aligning with new credit risk management rules.
The rule, in the simplest words
How it plays out — a real example

A payments & clearing officer in Indore, Priya, is preparing the bank's financial statements for March 2026. She now has to pull up a list of all loans given to the bank's directors and their family businesses, check the outstanding amounts and whether any are flagged as NPA, and then fill a new table in the notes to accounts. This extra step makes her feel more careful about lending to people connected to the bank.

What changed

A new sub-paragraph (ix) under 'Exposures' in Chapter-III of the Directions requires RRBs to disclose details of loans to related parties, including aggregate sanctioned and outstanding amounts, SMA/NPA classification, provisions held, and contracts/arrangements with related parties. This follows the issuance of the Credit Risk Management Amendment Directions.

What it means for you

RRBs must now enhance transparency by reporting related party exposures in a standardized table format in their financial statement notes. This increases regulatory oversight and helps identify potential concentration risks or conflicts of interest. Banks need to update their reporting systems and ensure data capture for related party transactions from FY 2026-27 onwards.

What you must do

Who it affects

Regional Rural Banks (RRBs), RRB compliance and finance teams, Auditors of RRBs

❓ Common questions

What is the effective date for these disclosure requirements?

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

What specific data must be disclosed for related party loans?

RRBs must disclose aggregate value of loans sanctioned and outstanding during the year, outstanding as a proportion of total credit exposure, SMA/NPA classification, and provisions held, as per the table in the notification.

Does this apply to all contracts or just loans?

It covers both loans to related parties and other contracts/arrangements awarded to related parties, with separate disclosure for each category.

📜 Read the original circular — full text as issued by RBI
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On a review, consequent to the issuance of the Reserve Bank of India (Regional Rural 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: (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 (Regional Rural 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/2025-26/184 · 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 and aggregate loan sanctions, outstanding amounts, SMA/NPA status, and provisions for related parties.
📜 Compliance
  • Identify and define related parties per the Credit Risk Management Directions, 2025.
  • Track contracts and arrangements awarded to related parties during the year.
  • Prepare to disclose the required table in financial statements for periods ending March 31, 2026 and onward.
  • Consider early adoption of the amendments if feasible.
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 (Regional Rural Banks (RRBs), RRB compliance and finance teams, Auditors of RRBs), your first concrete step on “RRB Financial Disclosure Amendment: Related Party Exposures” is: “Identify and define related parties per the Credit Risk Management Directions, 2025.” (RBI issued this 05 Jan 2026).

  1. Circular: RBI/2025-26/184 -- RRB Financial Disclosure Amendment: Related Party Exposures
  2. Issued: 05 Jan 2026
  3. Action required: Identify and define related parties per the Credit Risk Management Directions, 2025.
  4. Action required: Set up systems to capture and aggregate loan sanctions, outstanding amounts, SMA/NPA status, and provisions for related parties.
  5. Action required: Track contracts and arrangements awarded to related parties during the year.
  6. Action required: Prepare to disclose the required table in financial statements for periods ending March 31, 2026 and onward.
  7. Action required: Consider early adoption of the amendments if feasible.
  8. Owner: ____________ Target date: ____________
  9. Board/committee approval needed? Y / N
  10. 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.

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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=13260&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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