The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Directions, 2025.
The following has been stated: -
•These Reserve Bank of India Directions, 2025, govern the presentation and disclosures in the financial statements of Local Area Banks (LABs), effective immediately.
•LABs must prepare their Balance Sheet and Profit and Loss Account using the forms set out in the Third Schedule of the Banking Regulation Act, 1949, and adhere to Accounting Standards, subject to RBI guidelines.
•Chapter II provides detailed instructions for the compilation of balance sheet schedules, including specific coverage and notes for items like Capital, Reserves, Deposits, Borrowings, Other Liabilities, Cash, Balances with RBI and Banks, Investments, and Advances.
•A key instruction is the separate disclosure of various reserve categories and the classification of deposits, borrowings (including subordinated debt), and advances.
These directions shall become effective on November 28, 2025.
[Notification No.: RBI/DOR/2025-26/241 DOR.ACC.REC.No.160/21.04.018/2025-26]
