The Reserve Bank of India (RBI) on November 28, 2025 issued the Reserve Bank of India (Payments Banks – Financial Statements: Presentation and Disclosures) Directions, 2025, to provide a comprehensive framework for preparation, presentation, and disclosure of financial statements by Payments Banks. The Directions are applicable to all licensed Payments Banks and prescribe formats for the Balance Sheet and Profit & Loss Account, along with detailed notes, instructions, and guidance for compilation, ensuring alignment with the Banking Regulation Act, 1949 and applicable Accounting Standards. The Directions emphasize strict compliance with Accounting Standards notified under Companies (Accounting Standards) Rules, 2021, and clarify that inclusion in instructions does not imply permissibility of transactions.
The Directions elaborate on the classification and presentation of key balance sheet items including capital, reserves, deposits, borrowings, other liabilities, assets, fixed assets, advances, investments, and contingent liabilities. It specifies disclosure requirements for inter-branch accounts, nostro accounts, provisioning for fraud, deferred tax liabilities, and other accounting nuances. For Profit & Loss Accounts, the Directions cover detailed instructions for interest earned, other income, interest expended, operating expenses, and provisions/contingencies, while prescribing guidance for treatment of extraordinary items, prior period items, revenue recognition, and foreign exchange transactions in line with Accounting Standards 5, 9, and 11.
Further, the Directions provide guidance on practical application of accounting principles, including the use of average or closing exchange rates for foreign currency transactions where exact rates are difficult to determine, and treatment of advances, investments, and assets in compliance with RBI regulations. Payments Banks are required to provide detailed notes to accounts for material items exceeding 1% of total assets, income, or expenditure, ensuring transparency, consistency, and comparability of financial reporting across the sector.
These Directions shall come into force with immediate effect.
[Notification No. RBI/DOR/2025-26/216 DOR.ACC.REC.No.135/21.04.018/2025-26]
