Not yet independently checked — please confirm with the official RBI source below
Source: Reserve Bank of India · RBI/DOR/2026-27/213 · issued FY 2026-27 · ~1 min read
Quick answerRBI deletes LCR, NSFR, and remuneration disclosure requirements from SFB financial statements, effective April 1, 2027, following issuance of separate Basel Pillar 3 disclosure directions for SFBs.
The rule, in the simplest words
Small Finance Banks no longer have to show their Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) in their yearly financial reports.
Banks also do not have to show how they pay their top people (remuneration) in those reports anymore.
These rules start on April 1, 2027, so banks have time to change their report formats.
The change happened because RBI made a separate set of rules for capital and risk disclosures (Basel Pillar 3) just for SFBs.
How it plays out — a real example
Ravi, the CFO of a small finance bank, is preparing the annual report for FY2027-28. He removes the LCR and NSFR tables from the financial statement notes, as per the new direction, and instead ensures his team submits these numbers through the separate Basel Pillar 3 return to RBI.
What changed
RBI deleted paragraphs 10(2)(ii) and 10(2)(iii) from the 2025 Directions, which required SFBs to disclose Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) in their financial statements. Paragraph 10(13) on remuneration disclosures was also removed. These changes take effect from April 1, 2027.
What it means for you
SFBs no longer need to include LCR, NSFR, and remuneration details in their published financial statements. This reduces reporting burden. Banks should ensure their reporting systems are updated by the effective date.
What you must do
Remove LCR and NSFR disclosure templates from financial statement schedules by April 1, 2027.
Delete remuneration disclosure requirements from financial statement notes by the same date.
Coordinate with compliance teams to align internal reporting with the new Basel Pillar 3 disclosure regime.
Update board-approved policies and audit checklists to reflect these deletions.
Who it affects
Small Finance Banks (SFBs), Compliance officers at SFBs, Auditors reviewing SFB financial statements, Regulatory reporting teams
❓ Common questions
Why were LCR and NSFR disclosures removed from financial statements?
RBI issued separate Basel Pillar 3 disclosure directions for SFBs, making these liquidity disclosures redundant in financial statements. The change avoids duplication.
Do SFBs still need to report LCR and NSFR to RBI?
under verification – source does not address ongoing reporting requirements beyond financial statement disclosures.
When must we stop including these disclosures?
From April 1, 2027. Financial statements for periods ending on or after that date should exclude LCR, NSFR, and remuneration disclosures.
📜 Read the original circular — full text as issued by RBI
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2026-27/213 · issued FY 2026-27. 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 (Small Finance Banks (SFBs), Compliance officers at SFBs, Auditors reviewing SFB financial statements, Regulatory reporting teams), your first concrete step on “SFB Financial Statement Disclosures: LCR, NSFR, Remuneration Removed” is: “Remove LCR and NSFR disclosure templates from financial statement schedules by April 1, 2027.” (RBI issued this FY 2026-27).
Action required: Remove LCR and NSFR disclosure templates from financial statement schedules by April 1, 2027.
Action required: Delete remuneration disclosure requirements from financial statement notes by the same date.
Action required: Coordinate with compliance teams to align internal reporting with the new Basel Pillar 3 disclosure regime.
Action required: Update board-approved policies and audit checklists to reflect these deletions.
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 30 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=13655&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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