RBI master-direction · 28 Nov 2025
RBI/DOR/2025-26/167 DOR.ACC.REC.No.86/21.04.018/2025-26 November 28, 2025 Previous Versions Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025 (Updated as on July 01, 2026) Table of Contents Chapter-I Preliminary A. Short title and commencement B. Applicabilit…
RBI/DOR/2025-26/167 DOR.ACC.REC.No.86/21.04.018/2025-26 November 28, 2025 Previous Versions Reserve Bank of India (Commercial Banks - Financial Statements: Presentation and Disclosures) Directions, 2025 (Updated as on July 01, 2026)
Table of Contents
Chapter-I Preliminary A. Short title and commencement B. Applicability
Chapter-II Balance Sheet and Profit and Loss Account A. Format of the balance sheet and profit and loss account B. Notes and instructions for compilation C. Guidance on specific issues with respect to certain Accounting Standards
Chapter-III Disclosure in Financial Statements – Notes to Accounts A. General B. Presentation C. Disclosure requirements
Chapter-IV Consolidated Financial Statements
Chapter-V Other Instructions A. Inter-branch account - provisioning for net debit balance B. Reconciliation of Nostro account and treatment of outstanding entries C. Transfer to / appropriation from Reserve funds D. Provisioning for fraud E. Unreconciled balances F. Deferred tax liability (DTL) on Special Reserve created under Section 36(1) (viii) of the Income Tax Act, 1961 G. Window dressing
Chapter-VI Repeal and Other Provisions A. Repeal and saving B. Application of other laws not barred C. Interpretations
Annex I Annex II
In exercise of the powers conferred by section 35A of the Banking Regulation Act, 1949, and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.
Chapter-I Preliminary
A. Short title and commencement
B. Applicability
Chapter-II Balance Sheet and Profit and Loss Account
A. Format of the balance sheet and profit and loss account
B. Notes and instructions for compilation
(1) Instructions for compilation of balance sheet
| Item | Sch | Coverage | Notes and instructions for compilation |
|---|---|---|---|
| Capital | 1 | Nationalised Banks Capital (Fully owned by Central Government) | The capital owned by Central Government as on the date of the balance-sheet including contribution from Government, if any, for participating in World Bank projects shall be shown. |
| Banks incorporated outside India : Capital | The amount brought in by a bank by way of start-up capital as prescribed by RBI should be shown under this head. The amount of deposit kept with RBI, under sub-section 2 of Section 11 of the Banking Regulation Act, 1949 (‘BR Act’) should also be shown. The amount held under Section 11(2)(b)(i) of the BR Act and earmarked as Credit Risk Mitigation (CRM) shall be disclosed by way of a note in Schedule 1 : Capital to the Balance Sheet as given below: 1[‘An amount of ₹… (Previous year: ₹….) out of the amount held as deposit under Section 11(2) of the BR Act has been earmarked as credit risk mitigation (CRM) for offsetting of exposures to Head Office (including overseas branches of the Head Office) and is not reckoned for regulatory capital and other statutory requirements, if any.’] | ||
| Other Banks (Indian) Authorised Capital (__ shares of ₹ ___ each) Issued Capital (__ shares of ₹ ___ each) Subscribed Capital (__ shares of ₹ ___ each) Called up Capital (__ shares of ₹ ___ each) Less: Calls unpaid Add: Forfeited shares Paid up Capital | Authorised, Issued, Subscribed, Called-up capital shall be given separately. Calls in arrears will be deducted from Called-up capital while the paid-up value of forfeited shares shall be added thus arriving at the Paid-up capital. Where necessary, items which can be combined shall be shown under one head, for instance ‘Issued and Subscribed Capital’. Notes: 1. The changes in the above items, if any, during the year, say, fresh contribution made by Government, fresh issue of capital, capitalisation of reserves, etc., shall be explained in the notes. 2. Perpetual Non-Cumulative Preference Shares (PNCPS) included as part of Tier 1 regulatory capital shall be included here. | ||
| Reserves and Surplus | 2 | (I) Statutory Reserves | Reserves created out of the profits in compliance with Sections 17(1), 11(2)(b)(ii) (read with paragraph 21 of this Master Direction) or any other section of the BR Act shall be separately disclosed. |
| (II) Capital Reserves | The expression ‘Capital Reserves’ shall not include any amount regarded as free for distribution through the Profit and Loss Account. Surplus on revaluation shall be treated as Capital Reserves. Surplus on translation of the financial statements of overseas branches (which includes fixed assets also) is not a revaluation reserve. | ||
| (III) Share Premium | Premium on issue of share capital shall be shown separately under this head. | ||
| (IV) Revenue and Other Reserves | 4The expression ‘Revenue Reserve’ shall mean any reserve other than Capital Reserve. This item will include all reserves, other than those separately classified. The expression ‘reserve’ shall not include any amount retained by way of providing for depreciation, renewals, or diminution in value of assets or retained by way of providing for any known liability. | ||
| (V) Balance in Profit and Loss Account | Includes balance of profit after appropriations. In case of loss the balance shall be shown as a deduction. Note: Movements in various categories of reserves shall be shown as indicated in the schedule. | ||
| Deposits | 3 | A. (I) Demand Deposits (i) From banks | Includes all bank deposits repayable on demand. |
| (ii) From others | Includes all demand deposits of the non-bank sectors. Credit balances in overdrafts, cash credit accounts, deposits payable at call, overdue deposits, inoperative current accounts, matured time deposits, cash certificates, and certificates of deposits, etc., shall be included under this category. | ||
| (II) Savings Bank Deposits | Includes all savings bank deposits (including inoperative savings bank accounts) | ||
| (III) Term Deposits (i) From banks | Includes all types of bank deposits repayable after a specified term. | ||
| (ii) From others | Includes all types of deposits of the non-bank sector repayable after a specified term. Fixed deposits, cumulative and recurring deposits, cash certificates, certificates of deposits, annuity deposits, deposits mobilised under various schemes, ordinary staff deposits, foreign currency non-resident deposits accounts, etc., shall be included under this category. | ||
| B. (i) Deposits of branches in India (ii) Deposits of branches outside India | The total of these two items should match the total deposits shown in the Balance Sheet. Note: 1. Interest payable on deposits which is accrued but not due shall not be included but shown under other liabilities. 2. Matured term deposits shall be treated as demand deposits. 3. Deposits under special schemes shall be included under term deposits if they are not payable on demand. When such deposits have matured for payment, they shall be shown under demand deposits. 4. Deposits from a bank will include deposits from the banking system in India, co-operative banks, foreign banks which may or may not have a presence in India. 5. A bank shall disclose by way of a footnote to this schedule, the amount of deposits against which lien is marked out of the total deposits (For current and previous year). | ||
| Borrowings | 4 | (I) Borrowings in India (i) RBI | Includes repo, other borrowings or refinance obtained from RBI. |
| (ii) Other banks (iii) Other institutions and agencies | Includes repo, other borrowings or refinance obtained from banks (including Co-operative banks) and balances in Repo Account. Includes borrowing / refinance obtained from Export-Import Bank of India, NABARD, and other institutions, agencies (including liability against participation certificates-without risk sharing, if any) and balances in Repo Account. | ||
| (II) Borrowings outside India Secured borrowings included in above | Includes borrowings of Indian branches from outside India as well as borrowings of foreign branches. This item shall be shown separately. Includes secured borrowings / refinance in India and outside India. Note: 1. The total of I and II should match the total borrowings shown in the balance sheet. 2. Inter-office transactions shall not be shown as borrowings. 3. Funds raised by foreign branches by way of certificates of deposits, notes, and bonds, etc., shall be classified depending upon documentation, as ‘deposits’, ‘borrowings’, etc. 4. Refinance obtained by a bank from RBI and various institutions shall be shown under the head ‘Borrowings’. Accordingly, advances shall be shown at the gross amount on the asset side. 5. The following shall be included here: a) Perpetual Debt Instruments b) Tier 2 Capital Instruments c) Perpetual Cumulative Preference Shares (PCPS) d) Redeemable Non-Cumulative Preference Shares (RNCPS) e) Redeemable Cumulative Preference Shares (RCPS) f) Subordinated Debt. | ||
| Other Liabilities and Provisions | 5 | (I) Bills Payable | Includes drafts, telegraphic transfers, traveller’s cheques, mail transfers payable, pay slips, bankers cheques, and other miscellaneous items. |
| (II) Inter-office adjustments (net) | The inter-office adjustments balance, if in credit, shall be shown under this head. The bank should first segregate the credit entries outstanding for more than 5 years in the inter-branch account and transfer them to a separate Blocked Account which should be shown under ‘Other Liabilities and Provisions - Others’. While arriving at the net amount of inter-branch transactions for inclusion here, or Schedule 11, as the case may be, the aggregate amount of Blocked Account should be excluded and only the amount representing the remaining credit entries should be netted against debit entries. Only net position of inter-office accounts, inland as well as foreign, shall be shown here. | ||
| (III) Interest accrued | Includes interest accrued but not due on deposits and borrowings. | ||
| (IV) Others (including provisions) | Includes net provision for income tax, other taxes like interest tax (less advance payment, tax deducted at source, etc.), deferred tax (if after netting as per AS 22 is a liability), floating provisions, and contingency funds which are not disclosed as reserves but are actually in the nature of reserves, other liabilities which are not disclosed under any of the major heads such as unclaimed dividend, provisions and funds kept for specific purposes, unexpired discount, outstanding charges like rent, conveyance, etc. Aggregate Net Credit in the Clearing Differences transferred to a separate Blocked Account shall be shown here. Outstanding credit entries in nostro accounts transferred to Blocked Account shall also be shown here. Note: 1. For arriving at the net balance of inter-office adjustments all connected inter-office accounts shall be aggregated and the net balance only will be shown, representing mostly items in transit and unadjusted items. 2. The interest accruing on all deposits, whether the payment is due or not, shall be treated as a liability. 3. It is proposed to show only deposits under the head ‘deposits’ and hence all surplus provisions for bad and doubtful debts, contingency funds, etc., which are not netted off against the relative assets, shall be brought under the head ‘Others (including provisions)’. 4. Provisions towards Standard Assets shall not be netted from gross advances and shown separately as ‘Provisions against Standard Assets’ under ‘Others’ in Schedule 5 of the Balance Sheet. 5. Where any item under the ‘Others (including provisions)’ exceeds one per cent of the total assets, particulars of all such items shall be disclosed in the notes to accounts. | ||
| ASSETS | |||
| Cash and balances with the RBI | 6 | (I) Cash in hand (including foreign currency notes) | Includes cash in hand including foreign currency notes, and also of foreign branches in the case of a bank having such branches. |
| (II) Balances with RBI (i) in Current Account (ii) in Other Accounts | All type of reverse repos with RBI including those under Liquidity Adjustment Facility shall be presented under sub-item (ii) ‘in Other Accounts’. | ||
| Balances with banks and money at call and short notice | 7 | (I) In India (i) Balances with banks (a) in Current Accounts (b) in Other Deposit Accounts | Includes all balances with banks in India (including Co-operative banks), except Money at Call and Short Notice as explained below. Balances in current account and other deposit accounts shall be shown separately. |
| (ii) Money at Call and Short notice (a) with banks (b) with otherinstitutions | Includes the following if they are for original tenors up to and inclusive of 14 days: (i) Money lent in the call / notice money market (ii) Reverse Repo with banks and other institutions The balances in Reverse Repo A/C shall be classified under Schedule 7 under item I (ii) (a) or I (ii) (b) as appropriate. | ||
| (II) Outside India (i) in Current Accounts (ii) in Other Deposit Accounts (iii) Money at Call and Short Notice | Includes balances: (i) held by foreign branches of the bank; and (ii) held outside India by the Indian branches of the bank. Balances held by Indian branches of the bank with its foreign branches shall not be shown under this head. Instead, such balances shall be included in inter-branch accounts. The amounts held in ‘current accounts’ and ‘deposit accounts’ shall be shown separately. ‘Money at Call and Short Notice’ outside India includes deposits usually classified as per that foreign jurisdiction’s laws, regulations, or market practices as money at call and short notice where such money is lent. | ||
| Investments | 8 | (I) Investments in India in (i) Government securities (ii) Other Approved Securities (iii) Shares (iv) Debentures and Bonds (v) Subsidiaries and / or Joint Ventures (vi) Others | Includes Central and State Government Securities and Government Treasury Bills. Securities other than Government Securities, which have been specified by the Reserve Bank as ‘approved securities’ under Section 5(a) of the BR Act shall be included here. Investments in shares of companies and corporations not included in item (ii) shall be included here. Investments in debentures (as defined by the Companies Act, 2013) and bonds of companies and corporations not included in item (ii) shall be included here. Investments in subsidiaries and joint ventures (including associates) shall be included here. Residual investments, if any, like mutual funds, gold, etc. |
| (II) Investments outside India (i) Government Securities (including local authorities) (ii) Subsidiaries and / or Joint ventures abroad (iii) Others investments | All foreign Government Securities including securities issued by local authorities shall be classified under this head. All investments made in the share capital of subsidiaries floated outside India and / or joint ventures abroad shall be classified under this head. All other investments outside India shall be shown under this head. | ||
| Advances | 9 | A.(i) Bills purchased and discounted (ii) Cash credits, overdrafts and loans repayable on demand (iii) Term loans | In classification under section A, all outstanding advances in India as well as outside India net of provisions made, will be classified under three heads as indicated and shall include both secured and unsecured advances as well as overdue instalments.Receivables acquired under factoring shall be reported under ‘Bills purchased and Discounted’. All loans repayable on demand and short-term loans with original maturity up to one year shall be classified under ‘Cash credits, overdrafts and loans repayable on demand’. Outstanding balances on credit cards shall be included under this category. Other balances pertaining to credit operations, even if they are dues from other banks / organisations shall be shown as part of advances. However, where such dues are in the nature of fee or other revenue receivable the same may be shown as Other Assets. A ‘Term Loan’ is a loan which has a specified maturity and is payable in instalments or in bullet form. All Term Loans with maturity in excess of one year shall be classified under this category (i.e., A(iii)) whereas as explained above short term loans with original maturity up to one year shall be categorised as loans repayable on demand. |
| B.(i) Secured by tangible assets (ii) Covered by Bank / Government Guarantee (iii) Unsecured | All advances or part of advances including advances against book debts which are secured by tangible assets shall be shown here. The item will include secured advances both in and outside India. The bank shall specify that advances secured by tangible assets includes advances against book debts. Advances in India and outside India to the extent they are covered by guarantees of Indian / foreign governments, Indian / foreign banks, Deposit Insurance and Credit Guarantee Corporation (DICGC), and Export Credit Guarantee Corporation of India (ECGC) shall be included here. Further, advances to the extent they are covered by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH), and individual schemes under National Credit Guarantee Trustee Company Ltd. (NCGTC) which are backed by explicit Central Government Guarantee*, shall also be included here. *Note: In terms of Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025, as amended from time to time All advances not classified under (i) and (ii) shall be included here. Rights, licenses, authorisations, etc., charged to a bank as collateral should not be reckoned as tangible security and therefore such advances shall be reckoned as unsecured under this head, with a disclosure of the same in the notes to the account. Total of ‘A’ should tally with total of ‘B’. | ||
| C. (I) Advances in India (i) Priority Sectors (ii) Public Sector (iii) Banks (iv) Others (II) Advances outside India (i) Due from banks (ii) Due from others (iii) Bills purchased and discounted (iv) Syndicated loans (v) Others | |||
