The Reserve Bank of India (RBI) on November 28, 2025 issued the Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025, providing a comprehensive, standardised framework for preparation, presentation and disclosure of financial statements by commercial banks. These Directions strengthen uniformity, comparability and transparency in statutory financial reporting under Section 29 of the Banking Regulation Act, 1949.
The Directions prescribe formats for the Balance Sheet and Profit & Loss Account as per the Third Schedule to the Act, detailed compilation instructions, treatment of specific accounting issues, and mandatory compliance with notified Accounting Standards subject to RBI guidelines. They also set out extensive disclosure requirements, including notes to accounts, prudential norms, regulatory capital components, asset quality details, provisions, exposures, reconciliation of Nostro and inter-branch accounts, fraud provisioning, tax matters, and consolidation instructions for group entities.
The framework aims to enhance clarity, ensure high-quality disclosures, prevent window dressing, and align reporting practices with regulatory and supervisory expectations for improved financial discipline and market confidence.
[Notification No. RBI/DOR/2025-26/167]
