RBI deletes LCR, NSFR, and remuneration disclosures from financial statements
Current · Source: Reserve Bank of India · official publication, rbi.org.in · ~2 min read
Quick answerRBI has deleted mandatory disclosures on Liquidity Coverage Ratio (LCR), Net Stable Funding Ratio (NSFR), and remuneration from financial statements, effective April 1, 2027. Banks no longer need to publish these three items in their annual reports.
The rule, in the simplest words
RBI removed the rule that forced banks to show their Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) in their yearly reports.
Banks no longer have to publish details about how they pay their top people (remuneration) in their financial statements.
These changes start on April 1, 2027, so banks have time to update their report templates.
Banks still have to calculate LCR and NSFR and send them to RBI; only the public part in annual reports is gone. (Note: The source does not explicitly state continued reporting; this is inferred.)
This is the eighth update to the 2025 financial statement rules, and it matches changes in the capital adequacy rules.
How it plays out — a real example
Ravi, the CFO of a mid-sized private bank, is preparing the annual report template for FY2027-28. He removes the three pages that previously showed LCR, NSFR, and CEO pay details. He tells his team: 'We still report these numbers to RBI, but no need to print them in the annual report anymore.'
What changed
RBI removed paragraphs 10(2)(ii) and 10(2)(iii) from the 2025 Directions, which required banks to disclose LCR and NSFR in financial statements. It also deleted paragraph 10(13) on remuneration disclosures. These changes take effect from April 1, 2027.
What it means for you
Banks can simplify their financial statement notes by dropping three disclosure items, reducing compliance burden. However, LCR and NSFR data must still be reported to RBI under prudential norms; only public disclosure in annual reports is removed. Remuneration disclosures may shift to other regulatory filings. (Note: The source does not explicitly state continued reporting to RBI; this is inferred from the reference to Basel Pillar 3 disclosures.)
What you must do
Remove LCR, NSFR, and remuneration disclosure paragraphs from financial statement templates for periods starting April 1, 2027.
Continue reporting LCR and NSFR to RBI as per capital adequacy directions; only public disclosure in annual reports is deleted. (Note: The source does not explicitly mandate continued reporting; this is inferred.)
Review remuneration disclosure requirements under other RBI or SEBI guidelines to ensure no gap in compliance.
Update internal checklists and audit procedures to reflect the deletion of these three disclosure items.
Who it affects
All commercial banks in India, Finance and accounts teams preparing annual financial statements, Auditors reviewing disclosure compliance
❓ Common questions
Do we still need to calculate LCR and NSFR after this amendment?
Yes. The amendment only removes the requirement to disclose LCR and NSFR in financial statements. You must still compute and report these ratios to RBI under the Basel III capital adequacy framework. (Note: The source does not explicitly state this; it is inferred from the reference to Basel Pillar 3 disclosures.)
When does this change take effect?
From April 1, 2027. For financial years ending March 31, 2028 and onwards, these disclosures are no longer required in annual reports.
Does this affect remuneration disclosures for key management personnel?
The specific paragraph on remuneration disclosures in financial statements is deleted. However, other regulatory requirements (e.g., under SEBI LODR or RBI's governance guidelines) may still apply. Check with your compliance team.
Continue reporting LCR and NSFR to RBI as per capital adequacy directions; only public disclosure in annual reports is deleted. (Note: The source does not explicitly mandate continued reporting; this is inferred.)
📜 Compliance
Remove LCR, NSFR, and remuneration disclosure paragraphs from financial statement templates for periods starting April 1, 2027.
Review remuneration disclosure requirements under other RBI or SEBI guidelines to ensure no gap in compliance.
Update internal checklists and audit procedures to reflect the deletion of these three disclosure items.
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 accounts teams preparing annual financial statements, Auditors reviewing disclosure compliance), your first concrete step on “RBI deletes LCR, NSFR, and remuneration disclosures from financial statements” is: “Remove LCR, NSFR, and remuneration disclosure paragraphs from financial statement templates for periods starting April 1, 2027.”.
Circular: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=13649&Mode=0 -- RBI deletes LCR, NSFR, and remuneration disclosures from financial statements
Issued: 31 Jul 2026, 04:18 IST
Action required: Remove LCR, NSFR, and remuneration disclosure paragraphs from financial statement templates for periods starting April 1, 2027.
Action required: Continue reporting LCR and NSFR to RBI as per capital adequacy directions; only public disclosure in annual reports is deleted. (Note: The source does not explicitly mandate continued reporting; this is inferred.)
Action required: Review remuneration disclosure requirements under other RBI or SEBI guidelines to ensure no gap in compliance.
Action required: Update internal checklists and audit procedures to reflect the deletion of these three disclosure items.
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 31 Jul 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/scripts/NotificationUser.aspx?Id=13649&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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