RBI Directions for Regional Rural Banks' Financial Statements

Advances shall be classified on the sectoral basis as indicated. Advances, which qualify as priority sector lending according to extant RBI instructions are to be classified under the head 'Priority Sector'. Such advances shall be excluded from item (ii) i.e. advances to public sector. Advances to Central / State Governments and other Government undertakings including Government Companies and statutory corporations shall be included in the category 'Public Sector'. All advances to the banking sector including Co-operative Banks shall come under the head 'Banks'. All the remaining advances will be included under the head 'Others' and typically this category will include non-priority sector advances to the private, joint, and co-operative sectors. Notes 1. Advances shall be reported net of provisions made thereon (other than provisions towards Standard Assets). To the extent that General Provisions and Loss Reserves have not been treated as Tier 2 capital, they shall also be netted off from advances. 2. Term loans reported shall not include loans repayable on demand. 3. Consortium advances shall be reported net of share of other participating banks / institutions. 4. All interest-bearing loans and advances granted to bank's own staff shall be included here. 5. Advances to other banks / organisations shall be included here. 6. Interest accrued but not due should not be reflected here. Instead, it shall be shown under 'Interest accrued' in other assets. 7. Rights, licenses, and authorisations, etc., charged to the bank as security / collateral in respect of projects (including infrastructure projects) financed by them, shall not be reckoned as tangible security. Such advances shall be reckoned as unsecured. 8. Partial credit enhancement facilities to the extent drawn shall be treated as an advance. 9. The aggregate amount of inter-bank participations with risk sharing would be reduced from the aggregate advances outstanding by issuing bank. Participating bank shall show the amount of inter-bank participations under advances. Where the participation is without risk sharing, it shall be reflected by the participating bank as due from Banks under Schedule 9. 10. Reverse Repo with banks and other institutions having original tenors more than 14 days shall be shown under this Schedule under following head: i. A.(ii) 'Cash credits, overdrafts and loans repayable on demand' ii. B.(i) 'Secured by tangible assets' iii. C.(I).(iii) Banks (iv) 'Others' (as the case may be)

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2025-26/265 · issued 28 Nov 2025. The plain-English explanation above is BankPulse’s own independent summary.

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