The Reserve Bank of India (RBI) on April 01, 2026, issued the updates to the Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Directions, 2025.
The following has been updated:
• The update primarily reflects the incorporation of recent circulars, policy changes, and alignment with new regulatory frameworks, rather than introducing an entirely new standalone regulation.
• In essence, the revisions integrate the latest amendments issued during 2025–26 into a single, updated Master Direction, ensuring that all applicable instructions are available in one place. This is in line with RBI’s broader move to replace multiple circulars with consolidated Master Directions, improving clarity, accessibility, and compliance for regulated entities.
• The update also aligns the directions with recent regulatory developments, including changes in foreign exchange management frameworks, updated compliance requirements, and evolving risk management standards. Wherever new regulations (such as updated FEMA frameworks or sector-specific directions) have been issued, the Master Direction has been correspondingly modified to maintain consistency.
[Notification no. - RBI/DOR/2025-26/241 DOR.ACC.REC.No.160/21.04.018/2025-26]
