RBI notification RBI/2026-27/204 · 30 Jul 2026
Official title
Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026
Summary
Check the official recordThe Reserve Bank of India amends the Pillar 3 disclosure requirements to align with the Basel Framework. These amendments apply to all commercial banks. Banks must publish Pillar 3 disclosures in a standalone document on a dedicated website section. Banks must establish a board-approved disclosure policy and maintain internal controls. Senior officers must attest in writing that disclosures follow these internal control processes. Banks must archive reports for at least five years. The amendments define guiding principles for disclosures, including clarity, comprehensiveness, and consistency. Banks must publish disclosures within specific timelines, transitioning to concurrent reporting with financial statements from April 1, 2029. These directions take effect on April 1, 2027.
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Key dates
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RBI/2026-27/204 DOR.ACC.REC.No.185/21-02-002/2026-27 July 30, 2026
Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026
Please refer to ‘Annex III: Pillar 3 Disclosure Requirements’ of the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025 (hereinafter referred to as ‘the Directions’). Upon a review and to ensure greater consistency with the Basel Pillar 3 disclosure requirements, there is a felt need to amend these Directions.
Accordingly, 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) to issue instructions in this regard, the Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Amendment Directions hereinafter specified.
These Directions shall be called the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026.
The Amendment Directions modify the Directions as under:
4(1) In paragraph 134, the words “Table DF 4” shall be substituted with “Table CRD, Template CR4 and Template CR5”.
4(2) In paragraph 155(iv), the words “Table DF 5” shall be substituted with “Table CRC and Template CR3”.
4(3) For paragraphs 239 and 240, the following shall be substituted, namely:
“239. The provision of meaningful information about common key risk metrics to market participants is a fundamental tenet of a sound banking system. It reduces information asymmetry and helps promote comparability of a bank’s risk profiles within and across jurisdictions. Pillar 3 of the Basel Framework aims to promote market discipline through regulatory disclosure requirements. These requirements enable market participants to access key information relating to a bank’s regulatory capital and risk exposures in order to increase transparency and confidence about a bank’s exposure to risk and the overall adequacy of its regulatory capital.
Note - Pillar 3 disclosures are required to be made by all banks including those which are not listed on stock exchanges and / or not required to publish financial results / statement.”
4(4) Paragraph 242 shall stand deleted.
4(5) For paragraphs 243 to 249, the following shall be substituted, namely:
“243. Assurance of Pillar 3 data
(1) The information provided by a bank under Pillar 3 shall be subject, at a minimum, to the same level of internal review and internal control processes as the information provided by the bank for its financial reporting (i.e., the level of assurance shall be the same as for information provided within the management discussion and analysis part of the financial report).
(2) A bank shall have a formal disclosure policy for Pillar 3 data approved by the Board of Directors that sets out the internal controls and procedures for disclosure of such information.
(3) The key elements of this policy shall be described in the year-end Pillar 3 report or cross - referenced to another location where they are available.
(4) The Board of Directors and senior management shall be responsible for establishing and maintaining an effective internal control structure over the disclosure of financial information, including Pillar 3 disclosures. They shall also ensure that appropriate review of the disclosures takes place.
(5) One or more senior officers of a bank, at board level, shall attest in writing that Pillar 3 disclosures have been prepared in accordance with the board approved internal control processes.
(1) The Reserve Bank believes that the disclosure requirements strike an appropriate balance between the need for meaningful disclosure and the protection of proprietary and confidential information.
(2) In exceptional cases, disclosure of certain items required by Pillar 3 may reveal the position of a bank or contravene its legal obligations by making public information that is proprietary or confidential in nature. In such cases, a bank does not need to disclose those specific items but shall disclose more general information about the subject matter of the requirement instead. It shall also explain in the narrative commentary to the disclosure requirement the fact that specific items of information have not been disclosed and the reasons thereof.
Pillar 3 complements the minimum risk-based capital requirements and other quantitative requirements (Pillar 1) and the supervisory review process (Pillar 2) and aims to promote market discipline by providing meaningful regulatory information to investors and other interested parties on a consistent and comparable basis. The guiding principles aim to provide a firm foundation for achieving transparent, high-quality Pillar 3 risk disclosures that will enable users to better understand and compare a bank's business and its risks.
(1) Principle 1: Disclosures shall be clear
Disclosures shall be presented in a form that is understandable to key stakeholders (i.e., investors, analysts, financial customers, and others) and communicated through an accessible medium. Important messages shall be highlighted and easy to find. Complex issues shall be explained in simple language with important terms defined. Related risk information shall be presented together.
(2) Principle 2: Disclosures shall be comprehensive
(i) Disclosures shall describe a bank's main activities and all significant risks, supported by relevant underlying data and information. Significant changes in risk exposures between reporting periods should be described, together with the appropriate response by management.
(ii) Disclosures shall provide sufficient information in both qualitative and quantitative terms on a bank's processes and procedures for identifying, measuring, and managing those risks. The level of detail of such disclosure shall be proportionate to a bank's complexity.
(iii) Approaches to disclosure shall be sufficiently flexible to reflect how senior management and the board of directors internally assess and manage risks and strategy, helping users to better understand a bank's risk tolerance / appetite.
(3) Principle 3: Disclosures shall be meaningful to users
Disclosures shall highlight a bank's most significant current and emerging risks and how those risks are managed, including information that is likely to receive market attention. Where meaningful, linkages shall be provided to line items on the balance sheet or the income statement. Disclosures that do not add value to users' understanding or do not communicate useful information shall be avoided. Furthermore, information which is no longer meaningful or relevant to users shall be removed.
(4) Principle 4: Disclosures shall be consistent over time
(i) Disclosures shall be consistent over time to enable key stakeholders to identify trends in a bank's risk profile across all significant aspects of its business.
(ii) Additions, deletions, and other important changes in disclosures from previous reports, including those arising from a bank's specific, regulatory or market developments, shall be highlighted and explained.
(5) Principle 5: Disclosures shall be comparable across banks
The level of detail and the format of presentation of disclosures shall enable key stakeholders to perform meaningful comparisons of business activities, prudential metrics, risks, and risk management between banks and across jurisdictions.
(1) The frequencies of disclosure as indicated in the disclosure templates and tables provided in Annex III vary between concurrently, quarterly, semi-annual, and annual reporting depending upon the nature of the specific disclosure requirement.
