The Reserve Bank of India (RBI) on November 28, 2025, issued the Reserve Bank of India (All India Financial Institutions – Financial Statements: Presentation and Disclosures) Directions, 2025.
The following has been stated namely: -
• It requires all‐India financial institutions (AIFIs) to adopt enhanced standards for the presentation and disclosures of their financial statements, aligning these with global best practices and ensuring greater transparency.
• It states that the financial statements shall clearly articulate the basis of accounting, significant accounting policies, and a detailed breakdown of asset quality, capital adequacy, and exposure to risks, including credit, market and operational risk. Disclosure requirements also extend to off‐balance‐sheet exposures, the nature and extent of transactions with related parties, and the key judgments and estimates made by management.
• The format prescribed mandates a comparative approach with prior year figures, notes to accounts that provide meaningful explanations of changes, and, where applicable, segmental reporting to show performance across business lines.
• The circular emphasises that these enhanced disclosures will enable informed decision‐making by stakeholders and strengthen market discipline across the regulated financial sector.
• This shall come into force from November 28, 2025.
[Notification no. - RBI/DOR/2025-26/334 DOR.ACC.REC.No.253/21.04.018/2025-26]
