Current · Source: Reserve Bank of India · RBI/2026-27/91 · issued 18 May 2026 · ~1 min read
Quick answerRBI issues Sixth Amendment Directions 2026 for commercial banks, revising the definition of revenue reserve and adding a new provisions movement table for non‑performing investments (NPIs). Banks must update disclosures accordingly.
The rule, in the simplest words
Revenue Reserve means any reserve that is not a Capital Reserve, and it must NOT include money set aside for depreciation (wear and tear), renewals (fixing things), or known liabilities (bills we already know we have to pay).
Banks must remove any depreciation, renewal, and known‑liability amounts from the Revenue Reserve calculation.
Banks must add a new table called “Movement of provisions for non‑performing investments (NPIs)” that shows the opening balance, new provisions, write‑offs, and closing balance for each year.
These changes must be shown in the bank’s annual financial statements as soon as the directions are issued.
How it plays out — a real example
Amit, a senior credit officer at Punjab National Bank in Delhi, reviews the bank’s financial statements at year‑end. He makes sure the depreciation and renewal amounts are taken out of the revenue reserve, and he fills in the new “Movement of provisions for non‑performing investments (NPIs)” table with the opening balance, the provisions added, any write‑offs, and the closing balance, so the bank’s report follows the new RBI directions.
What changed
The amendment revises the definition of ‘Revenue Reserve’ in Schedule 2(IV), clarifying that it excludes depreciation, renewals and provisions for known liabilities. It also replaces paragraph 10(3)(vi) with a new heading ‘Movement of provisions for non‑performing investments (NPIs)’ and supplies a detailed table format with Current Year and Previous Year columns.
What it means for you
Banks need to reclassify reserves in their financial statements per the new definition, ensuring depreciation and liability provisions are not counted as revenue reserves. The new NPI provisions table requires annual reporting of opening balance, provisions made, write‑offs, and closing balance, enhancing transparency on NPI provisioning.
What you must do
Update the definition of revenue reserve in your financial statements as per the new wording.
Remove depreciation, renewal, and liability provision amounts from revenue reserve calculations.
Adopt the new month‑wise NPI provisions table in your disclosures.
Ensure all banks’ annual reports reflect these changes by the next filing deadline.
Cross‑check compliance with the amended directions before submission.
Who it affects
Commercial banks
❓ Common questions
When do the new directions apply?
From the date of issue, i.e., May 18, 2026.
Does the amendment affect capital reserves?
No, capital reserves remain unchanged; only revenue reserves are redefined.
What if a bank has already filed its 2025 returns?
The amendment applies to subsequent filings; earlier returns remain unaffected.
📜 Read the original circular — full text as issued by RBI
RBI/2026-27/91
DOR.MRG.REC.No.79/21-04-018/2026-27
May 18, 2026
Reserve Bank of India (Commercial Banks – Financial Statements:
Presentation and Disclosures) Sixth Amendment Directions, 2026
Please refer to Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025, dated November 28, 2025 .
2. On a review, consequent to the issuance of Reserve Bank of India (Commercial Banks - Classification, Valuation, and Operation of Investment Portfolio) Second Amendment Directions, 2026, and in exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949 (hereinafter called the Act) and all other laws enabling 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. (i) These Directions shall be called the Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Sixth Amendment Directions, 2026.
(ii) These Amendment Directions shall come into effect from the date of issue.
4. The Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025 , are amended as provided below.
(i) In the table under paragraph 5(1), notes and instructions for compilation for 'Revenue and Other Reserves' under Schedule 2(IV) shall be substituted by the following, namely: -
"The expression 'Revenue Reserve' shall mean any reserve other than Capital Reserve. This item will include all reserves, other than those separately classified. The expression 'reserve' shall not include any amount retained by way of providing for depreciation, renewals, or diminution in value of assets or retained by way of providing for any known liability.".
(ii) Paragraph 10(3)(vi) shall be substituted by the following, namely: -
"Movement of provisions for non-performing investments (NPIs)”.
(Amount in ₹ crore)
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/91 · issued 18 May 2026. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (Commercial banks), your first concrete step on “Commercial Banks – Financial Statements: Sixth Amendment Directions 2026” is: “Update the definition of revenue reserve in your financial statements as per the new wording.” (RBI issued this 18 May 2026).
Action required: Update the definition of revenue reserve in your financial statements as per the new wording.
Action required: Remove depreciation, renewal, and liability provision amounts from revenue reserve calculations.
Action required: Adopt the new month‑wise NPI provisions table in your disclosures.
Action required: Ensure all banks’ annual reports reflect these changes by the next filing deadline.
Action required: Cross‑check compliance with the amended directions before submission.
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
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BankPulse Compliance Evidence Pack — generated 02 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=13458&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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