Reserve Bank of India (All India Financial Institutions – Financial Statements: Presentation and Disclosures) Directions, 2025 (Updated as on April 1, 2026)

1. In force at once

The rules took effect the moment RBI issued them.

2. Five institutions, named

These rules bind EXIM Bank, NABARD, SIDBI, NHB and NaBFID, and nobody else.

1. Follow the accounting standards

Accounts must follow the Accounting Standards, as RBI's own directions modify them.

2. Three standards govern the group

Group accounts follow the standards on consolidation, associates and joint ventures.

3. Every subsidiary comes in

Every subsidiary is consolidated, in India and abroad, unless a standard lets it out.

4. What group accounts contain

A group balance sheet, a group profit and loss account, the main policies and the notes.

5. Same closing date

Every set of accounts used in the group must be drawn to the same closing date.

6. Older accounts, with adjustments

If that is not possible, a six-month-old balance sheet may be used, with adjustments for what happened in between.

7. One set of policies

The same accounting policies must be used across the group for the same kind of transaction.

8. When regulators differ

Where group companies answer to different regulators, use the rules that apply to the institution itself.

9. Associates at equity

An investment in an associate is carried by the equity method.

10. Joint ventures line by line

A joint venture is brought in by the proportionate consolidation method.

11. Group accounts as well

A group set of accounts must be prepared and published, not just the institution's own.

12. Say why it is out

If a subsidiary is left out of the group accounts, the reason must be stated.

13. If you cannot, say so

Where one set of policies cannot be used, say so and give the share of the items affected.

14. One month to send them

Both sets of accounts go to RBI's Department of Supervision within one month of publication.

1. No auditor note for this

Holding back income on a bad loan follows RBI's rules. The auditor should not qualify the accounts for it.

2. One per cent bar

Income is small below one per cent of total income. Counted after costs, the bar is one per cent of profit before tax.

3. Small income on receipt

Income that is not material may be booked when the money actually comes in.

4. Last week's average rate

A foreign currency deal may be booked at last week's average closing rate published by FEDAI.

5. Quarterly rate for branches

Income and costs of a separate foreign operation may be converted at the quarter's average closing rate.

6. Three and a half test

Last week's average must be within three and a half per cent of the day's rate. If not, use the day's rate.

BankPulse example. An institution books a dollar payment on a Wednesday. It would normally use last week's average closing rate from FEDAI. First it compares that average with the rate actually ruling on Wednesday. If the two are within three and a half per cent of each other, last week's average may be used. If the gap is more than three and a half per cent, Wednesday's own closing rate must be used instead.

7. Seven per cent swing

A gap above seven per cent is a big swing. Then the day's rate must be used.

8. One closing rate for all

The closing rate is the last closing spot rate FEDAI announced for that period.

9. No gain on repatriation

Bringing profits home from an overseas branch does not let the institution book the exchange gain held in reserve.

1. They do not replace others

These disclosures add to what other laws and standards already demand.

2. A floor, not a ceiling

These disclosures are the least that must be given, not the most.

3. Put them in the notes

Everything this chapter asks for goes into the notes to accounts.

4. Both sets of accounts

The listed items must appear in the notes to the institution's own accounts and to the group accounts.

5. Add more where it matters

Where something is material, disclose it even if the list does not name it.

6. Policies and notes apart

The summary of main accounting policies and the notes to accounts are shown separately.

7. Capital in the notes

The notes must carry the capital figures, tier by tier, for this year and last.