New Delhi [India], July 30 (ANI): The Reserve Bank of India (RBI) on Thursday issued 10 amendment directions revising instructions on Basel Pillar 3 disclosures for commercial banks, small finance banks, and payments banks. The central bank released the final regulations after reviewing stakeholder feedback on the draft framework directions originally issued in May 2026.
According to the RBI, the updated framework aims to promote market discipline through comprehensive public disclosures. The disclosures are intended to provide detailed information on the capital position and risk exposures of banking entities operating in the country.
The central bank said the disclosure requirements apply to all regulated banking entities. Under the regulatory framework, disclosures must be made at the top consolidated level of a banking group, while entities that are not the top group entity must make standalone Pillar 3 disclosures.
Under the revised norms, banks must maintain a formal disclosure policy approved by their respective boards of directors. Key elements of the policy must be detailed in the year-end Pillar 3 report, while all disclosed information must undergo internal review and control processes.
The 10 amendment directions issued by the central bank cover prudential norms on capital adequacy, asset-liability management, governance, and financial statement presentation for commercial banks, small finance banks, and payments banks.
The central bank also clarified that disclosure templates covering market risk, operational risk, counterparty credit risk, credit valuation adjustment, and leverage ratio for commercial banks will be issued separately at a later date.
“The Basel Pillar 3 disclosure templates on market risk, operational risk, counterparty credit risk, credit valuation adjustment, and leverage ratio for commercial banks shall be issued separately. Feedback received on these templates will be examined and suitably incorporated at the time of issuance of the respective templates for commercial banks,” the RBI said in its release. (ANI)
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