RBI Update - Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026 (Revised)

The Reserve Bank of India has issued the Small Finance Banks – Financial Statements: Presentation and Disclosures (Second Amendment) Directions, 2026 (Revised) on March 30, 2026, revising disclosure requirements relating to capital market exposures. The amendment replaces the existing disclosure format by introducing a detailed table on “Exposure to Capital Markets” under Notes to Accounts, requiring banks to separately disclose various components such as direct investments, advances against shares and securities, exposures to capital market intermediaries, financing to mutual funds, acquisition financing, underwriting commitments, irrevocable payment commitments, and trade exposures. Further, it is clarified that such disclosures shall be computed in accordance with the applicable concentration risk management and credit facilities directions. These revised provisions shall come into effect from the date of adoption of the Credit Facilities Amendment Directions, 2026, or July 1, 2026, whichever is earlier, superseding the earlier amendment dated February 13, 2026. Link - View Circular