RBI/DOR/2025-26/198
DOR.ACC.REC.No.117/21.04.018/2025-26
November 28, 2025
Previous Versions
Reserve Bank of India (Small Finance 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
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These Directions shall be called the Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) Directions, 2025.
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These Directions shall come into force with immediate effect.
B. Applicability
- These Directions shall be applicable to Small Finance Banks (hereinafter collectively referred to as 'banks' and individually as a 'bank').
Chapter-II Balance sheet and profit and loss account
A. Format of the balance sheet and profit and loss account
- In terms of the provisions of Section 29 of the Banking Regulation Act, 1949, a bank shall in respect of all business transacted by them prepare a balance sheet and profit and loss account as on the last working day of the year or the period, as the case may be, in the Forms set out in the Third Schedule of the Banking Regulation Act, 1949. In exercise of the powers conferred by Section 29(4) of the Banking Regulation Act, 1949, the Government of India has specified the Forms in the Third Schedule, vide notification S.O.240(E) dated March 26, 1992, published in the Gazette of India. These are reproduced in Annex I to these Directions.
B. Notes and instructions for compilation
- A bank shall follow the general instructions for the compilation of balance sheet and profit and loss account as specified in paragraph 5(1) below. A bank shall ensure strict compliance with the Accounting Standards notified under the Companies (Accounting Standards) Rules, 2021, as amended from time to time, subject to Directions / Guidelines issued by the Reserve Bank of India.
Note: Mere mention of an activity, transaction or item in instructions for compilation does not imply that it is permitted, and the bank shall refer to the extant statutory and regulatory requirements while determining the permissibility or otherwise of an activity or transaction.
(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) | - |
| Banks incorporated outside India: Capital | - |
| 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, and 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 - General:
- The changes in the above items, if any, during the year, say, fresh contribution made by Government, and fresh issue of capital, capitalisation of reserves, etc. shall be explained in the notes.
- 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 Section 17(1) (read with paragraph 20 of this Master Direction) or any other section of the Banking Regulation Act, 1949 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. |
| (III) | Share Premium | Premium on issue of share capital shall be shown separately under this head. |
| (IV) | Revenue and Other Reserves | The 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. Investment Fluctuation Reserve shall be shown under this head. |
| (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.
Notes:
Movements in various categories of reserves shall be shown as indicated in the schedule. |
| Deposits | 3 | A.I) | Demand Deposits
(i) From banks
(ii) From others | Includes all bank deposits repayable on demand.
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
(ii) From others | Includes all types of bank deposits repayable after a specified term.
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, and 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. |
