Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025
UR
- Applies toCommercial banks
- StatusIn force
- IssuedNovember 28, 2025
- Last amendedJul 30, 2026 · 7 incorporated
- Length75 points in 5 sections · 7 min read
The four dates on this rule
- PublishedNovember 28, 2025The day RBI put this document out. This is the same day as the Issued date on this rule.
- Starts to applyNovember 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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72 of the 75 points name no product and bind every product. All products.
Numbers to remember
| ninety days | Liquidity cover data is a plain average of daily figures over ninety days. RBI Para 11(2) |
| one month | Banks must send consolidated financial statements to RBI within one month of publishing annual accounts. RBI Para 16(9) |
| five years | Credit entries unreconciled for more than five years move to a Blocked Account. RBI Para 19(1) |
| two years | Banks must fully provide for unreconciled Nostro debit entries older than two years. RBI Para 20(5) |
| 25 percent | Banks must move at least 25 percent of net profit to the Statutory Reserve. RBI Para 21(2) |
What it says
How firm is each point
Stated by RBI — RBI’s own paragraph says this. We have only made it plainer.
Our reading — BankPulse read RBI’s paragraph and shortened it. The paragraph is the authority, not this line.
Needs judgement — RBI leaves this to the bank to settle, so nobody can give you a fixed number here.
Can be read two ways
A point marked this way sits on an RBI paragraph that can honestly be read two ways. Our own sentence takes one of the two. BankPulse does not choose for you: read RBI’s own paragraph, at the number printed on the point, before you act on it.
Two ways — both, or either one. RBI’s paragraph joins two things in the and-or form. One reading: Both of them apply, together. The other: Either one of them, on its own, is enough.
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 banks
This paper sets how commercial 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 commercial 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. Translation is not revaluation
A gain from turning an overseas branch's books into rupees is not a revaluation reserve.
15. Share premium stands alone
Premium on shares issued is shown on its own.
16. Provisions are not reserves
A sum kept for wear and tear, or for a known due, is not a reserve.
17. Loss shown as a deduction
Where there is a loss, the sum is shown as a deduction.
18. Accrued interest sits elsewhere
Interest earned but not yet due on deposits is shown under other dues.
19. Matured deposits are demand
A term deposit that has matured is treated as a demand deposit.
20. Scheme deposits classed by demand
A deposit under a special scheme is a term deposit unless it is payable on demand.
21. Refinance is a borrowing
Refinance from RBI or other bodies is shown under borrowings.
22. Advances shown gross
Advances are shown at the gross sum on the asset side.
23. Net the inter-office accounts
Only the net of inter-office accounts, at home and abroad, is shown.
24. Interest accrued is a liability
Interest earned on any deposit is a due, whether or not it is payable yet.
25. Standard asset provisions apart
Sums kept for standard assets are shown on their own, not cut from gross advances.
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. A big holder does not
Another investor holding most of the shares does not by itself rule out influence.
31. Intangible asset rule
This standard covers intangible assets not dealt with by another standard.
32. Intangibles block a dividend
A lender holding intangible assets needs Central Government leave to pay a dividend.
33. Sponsored RRBs are associates
A regional rural bank that a lender sponsors is treated as an associate.
34. 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
Must know
1. Ninety-day average
Liquidity cover data is a plain average of daily figures over ninety days.
Do it
2. Disclose in notes to accounts
What this chapter names must be shown in the notes to accounts.
3. Show the previous period
Last year's figure must be shown beside every figure for this year.
4. Narrative comparatives too
Last year's words must be given too, where they help make this year clear.
5. Weighted and unweighted
Both the weighted and the plain values of the liquidity parts must be shown.
6. Explain the ratio too
Words must go with the liquidity cover figures to make them clear.
7. Link if not included
If the figures are not in the report, a clear direct link must be given.
8. Four quarters if yearly
A yearly reporter must show the funding ratio for the last four quarters.
9. Keep an archive online
Old forms for earlier periods must be kept on the website.
10. Prescribed format always
Wherever it is shown, it must follow the form set out in this chapter.
11. Explain the funding ratio
Words must go with the stable funding ratio to make it clear.
12. Disclose sales out of HTM
Sales out of held to maturity must be shown in the notes in the set form.
13. Break out a big industry
An industry above a tenth of all industry advances must be shown on its own.
14. Overseas assets and bad loans
Overseas assets, bad loans and income must be shown for this year and last.
15. Report the resolution plans
A lender under the stressed assets rules must show its resolution plans.
Background
16. These do not replace others
These are added to, and do not take the place of, what other law asks for.
17. Policies as a schedule
The main accounting policies and the notes go in as their own schedules.
18. Haircuts before the value
The weighted value of top quality liquid assets is taken after haircuts.
19. Publish funding ratio with results
The stable funding ratio goes out in a set form with the results.
20. Consolidated and in rupees
The stable funding ratio is worked out for the whole group and shown in rupees.
21. Quarter-end observations
The funding ratio data is shown as figures at each quarter end.
22. Floating provisions may net off
Floating sums not counted in Tier 2 may be cut from gross bad loans.
23. Conversion outside the ceilings
Shares taken on turning debt to equity in a rework fall outside the market limits.
Chapter IV. Consolidated Financial Statements
1. One-month RBI filing
Banks must send consolidated financial statements to RBI within one month of publishing annual accounts.
2. Consolidated statements
Every bank, listed or not, must prepare consolidated financial statements each year.
Chapter V. 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. Statutory Reserve transfer
Banks must move at least 25 percent of net profit to the Statutory Reserve.
4. Withdrawal disclosure
Banks need RBI's approval to draw money out of reserves, and must disclose it separately.
5. Unclaimed transitory balances
Unclaimed balances in transitory accounts cannot be moved to profit or to reserves.
Do it
6. Late-report penalty
If a bank reports fraud late, it must set aside the full provision at once.
7. Deferred tax rule
Banks must set aside deferred tax on the Special Reserve under the Income Tax Act.
8. True and fair picture
The balance sheet and profit and loss account must show a true and fair picture.
Background
9. Reserve withdrawal approval
Banks need RBI's approval before taking money out of the Statutory Reserve or any other reserve.
10. Fraud provision spreading
A bank that reports fraud on time can spread the provision over four quarters.
11. Window dressing penalty
RBI treats window dressing and hiding bad loans seriously and can take penal action.
Chapter VI. Repeal and Other Provisions
1. Older rules cancelled
This document cancels the older financial-statement rules for Commercial Banks.
2. Old cases continue
Penalties and legal cases already started under the old rules still continue.
What RBI has fined people for under this rulebook
RBI has imposed 1 monetary penalty on this kind of lender. In each one its own stated reason names the subject of this rulebook. Each one links to the press release it was read from.
This tells you the rulebook RBI named. It does not tell you which of the points on this page was broken, because RBI does not say. Read the order itself before drawing any conclusion about your own bank.
These come from RBI press releases. The penalty tracker holds them all. It also lists the penalties we could not place on any rulebook, and the reason for each one.
How this rule has changed
The points above are the rule as it stands today, after every change listed here.
Issued on November 28, 2025. This is the date RBI put the rule out.
Changed on Jan 01, 2026.
- CRM disclosure note. Foreign banks must show a note in Schedule 1 for deposits marked for credit risk mitigation.
Changed on Jan 05, 2026.
- Meaning of related party. Banks must use the meaning of related parties from the 2025 credit risk management directions.
- Loans sanctioned disclosure. Banks must show the total loans they sanctioned to related parties during the year.
- Outstanding loans disclosure. Banks must show the total loans to related parties that are outstanding on March 31.
Changed on Mar 16, 2026.
- New disclosure line. Banks must add a table line for payment of Deposit Insurance and Credit Guarantee Corporation insurance premium.
- Delay disclosure. If premium was not paid on time, banks must also state this delay in the annual report.
- Effective date. These amendments apply from April 1, 2026.
Changed on Mar 30, 2026.
- New exposure table. Banks must add the new capital market exposure table in the notes to accounts as per the amendment.
- New sub paragraph iia. Banks must insert the new sub paragraph (iia) on capital market exposure after sub paragraph 10(5)(ii).
Changed on Apr 27, 2026.
- Stage 1 and 2 provisions. Banks must show Stage 1 and Stage 2 provisions under 'Others' in Schedule 5, not reduce them from gross advances.
- Income on investments. Banks must treat all return from the investment book as income, whether interest, discount, or dividend.
- Impairment standard scope. Impairment rules apply to non banking assets from claim settlement only when there are clear signs of impairment.
- Fraud disclosure template. Banks must report number of frauds, fraud amount, and related provisions in the given table format.
Changed on May 18, 2026.
- meaning of revenue reserve. Revenue reserve means every reserve that is not a capital reserve.
- what revenue reserve covers. Revenue reserve includes all reserves that are not shown in a separate class.
- what is not a reserve. A reserve does not include money kept for asset loss, renewal, or known liability.
Changed on Jul 30, 2026.
- Old LCR NSFR rules. Banks must stop using paragraph 10(2)(ii) and 10(2)(iii) for LCR and NSFR disclosure.
- Old pay disclosure rule. Banks must stop using paragraph 10(13) for staff pay disclosure.
- Change start date. These changes apply from April 1, 2027.
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The same subject for other kinds of institution.
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