Reserve Bank of India (Regional Rural Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 (Updated as on April 1, 2026)
UR
- Applies toRegional rural banks
- StatusIn force
- IssuedNov 28, 2025
- Last amendedMar 16, 2026 · 2 incorporated
- Length57 points in 5 sections · 5 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNov 28, 2025The day this rule starts to apply, as RBI's own text states it.
- Time to get readyNoneIt starts to apply on the day it was published.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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Two ways — firm, or the usual course. RBI’s paragraph softens the duty with a hedging word instead of stating it flat. One reading: It is a firm rule, and only a rare case RBI would accept sits outside it. The other: It is the usual course, and a bank may depart from it for its own recorded reasons.
Chapter I. Preliminary
1. Accounts rules for RRBs
This paper sets how regional rural banks must show their accounts.
2. Start date
These Directions came into effect on the day RBI issued them.
3. Who is covered
These Directions apply to every regional rural bank.
Chapter II. Balance Sheet and Profit and Loss Account
Must know
1. Capital reserves are not free
A capital reserve cannot hold any sum free to be paid out as profit.
2. Twenty per cent means influence
Holding a fifth or more of the votes is taken to mean significant influence.
Do it
3. Compile as instructed
The balance sheet and profit account must be drawn up as told here.
4. Follow the accounting standards
The set accounting rules must be followed, subject to what RBI says.
5. Explain the year's changes
Any change in capital in the year must be explained in the notes.
6. Statutory reserves shown apart
Reserves made under the Banking Regulation Act must be shown on their own.
7. Lien deposits in a footnote
The sum of deposits under lien must be shown in a note to the schedule.
8. Secured borrowings shown apart
Borrowings against security must be shown on their own.
9. Other banking business
Extra segments inside other banking business must be reported where they meet the test.
10. Name the related party
The name and nature of a related party tie must be shown, even with no dealings.
Background
11. Calls in arrears deducted
Calls in arrears come off called-up capital, and forfeited shares are added back.
12. Combine where sensible
Items that can go together are shown under one head.
13. Revaluation is a capital reserve
A gain on revaluing an asset is treated as a capital reserve.
14. Share premium stands alone
Premium on shares issued is shown on its own.
15. Provisions are not reserves
A sum kept for wear and tear, or for a known due, is not a reserve.
16. Loss shown as a deduction
Where there is a loss, the sum is shown as a deduction.
17. Accrued interest sits elsewhere
Interest earned but not yet due on deposits is shown under other dues.
18. Matured deposits are demand
A term deposit that has matured is treated as a demand deposit.
19. Scheme deposits classed by demand
A deposit under a special scheme is a term deposit unless it is payable on demand.
20. Refinance is a borrowing
Refinance from RBI or other bodies is shown under borrowings.
21. Advances shown gross
Advances are shown at the gross sum on the asset side.
22. Net the inter-office accounts
Only the net of inter-office accounts, at home and abroad, is shown.
23. Interest accrued is a liability
Interest earned on any deposit is a due, whether or not it is payable yet.
24. Standard asset provisions apart
Sums kept for standard assets are shown on their own, not cut from gross advances.
25. Rate on the day
Applying the rate of the day is hard for items not booked in rupees.
26. Format is only a guide
The format given is an example and does not cover everything.
27. Secrecy comes first
Where telling would break a duty of secrecy set by law, the disclosure is not made.
28. Customer secrecy is a duty
The common law duty to keep customer details secret excuses such disclosure.
29. Influence, not control
Significant influence is a share in policy decisions, not control over them.
30. Below twenty, no influence
Holding less than a fifth of the votes is taken to mean no significant influence.
31. A big holder does not
Another investor holding most of the shares does not by itself rule out influence.
32. Intangible asset rule
This standard covers intangible assets not dealt with by another standard.
33. Intangibles block a dividend
A lender holding intangible assets needs Central Government leave to pay a dividend.
34. Sponsored RRBs are associates
A regional rural bank that a lender sponsors is treated as an associate.
35. Impairment is for fixed assets
The wear and tear rule covers fixed assets, not loans or investments.
Chapter III. Disclosure in Financial Statements – Notes to Accounts
Do it
1. Disclose in notes to accounts
What this chapter names must be shown in the notes to accounts.
2. Show the previous period
Last year's figure must be shown beside every figure for this year.
3. Narrative comparatives too
Last year's words must be given too, where they help make this year clear.
4. Break out a big industry
An industry above a tenth of all industry advances must be shown on its own.
Background
5. These do not replace others
These are added to, and do not take the place of, what other law asks for.
6. Policies as a schedule
The main accounting policies and the notes go in as their own schedules.
7. Floating provisions may net off
Floating sums not counted in Tier 2 may be cut from gross bad loans.
Chapter IV. Other Instructions
Must know
1. Blocked Account credits
Credit entries unreconciled for more than five years move to a Blocked Account.
2. Old Nostro debits
Banks must fully provide for unreconciled Nostro debit entries older than two years.
3. Withdrawal disclosure
Banks need RBI's approval to draw money out of reserves, and must disclose it separately.
4. Unclaimed transitory balances
Unclaimed balances in transitory accounts cannot be moved to profit or to reserves.
Do it
5. Late-report penalty
If a bank reports fraud late, it must set aside the full provision at once.
6. Deferred tax rule
Banks must set aside deferred tax on the Special Reserve under the Income Tax Act.
7. True and fair picture
The balance sheet and profit and loss account must show a true and fair picture.
Background
8. Reserve withdrawal approval
Banks need RBI's approval before taking money out of the Statutory Reserve or any other reserve.
9. Fraud provision spreading
A bank that reports fraud on time can spread the provision over four quarters.
10. Window dressing penalty
RBI treats window dressing and hiding bad loans seriously and can take penal action.
Chapter V. Repeal and Other Provisions
1. Older rules cancelled
This document cancels the older financial-statement rules for regional rural banks.
2. Old cases continue
Penalties and legal cases already started under the old rules still continue.
How this rule has changed
The points above are the rule as it stands today, after every change listed here.
Issued on Nov 28, 2025. This is the date RBI put the rule out.
Changed on Jan 05, 2026.
- Define related parties. Banks must use the related party meaning from the 2025 credit risk management directions.
- Loans sanctioned data. Banks must report total loans sanctioned to related parties during the year.
- Loans outstanding data. Banks must report total loans to related parties that are outstanding on 31st March.
Changed on Mar 16, 2026.
- Disclose late payment. If a bank missed the due date for premium, this delay must also be reported in the annual report.
- Start date. These amendments apply from April 1, 2026.
The same subject for other kinds of institution
The same subject for other kinds of institution.
RBI financial statement and disclosure rules for all India financial institutions
RBI financial statement and disclosure rules for commercial banks
RBI financial statement and disclosure rules for local area banks
RBI financial statement and disclosure rules for payments banks
RBI financial statement and disclosure rules for rural co-operative banks
RBI financial statement and disclosure rules for small finance banks
RBI financial statement and disclosure rules for urban co-operative banks
Other RBI rules for regional rural banks
RBI credit bureau reporting rules for regional rural banks 2025
RBI credit card and debit card rules for regional rural banks 2025
RBI customer service and fair conduct rules for regional rural banks 2025
RBI deposit interest rate rules for regional rural banks 2025
RBI digital banking channel rules for regional rural banks 2025
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