IST,
Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025
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DRAFT FOR COMMENTS
RBI/2025-26/--
In exercise of the powers conferred under Sections 45L of the Reserve Bank of India Act, 1934 and Section 3 read with section 31A and section 6 of the Factoring Regulation Act, 2011, the Reserve Bank of India (‘RBI’), being satisfied that it is necessary and expedient in the public interest to do so, hereby, issues the Directions hereinafter specified. A. Short title and commencement 1. These Directions shall be called the Reserve Bank of India (Non-Banking Financial Companies – Financial Statements: Presentation and Disclosures) Directions, 2025. 2. These Directions shall come into force with immediate effect. B. Applicability 3. These Directions shall be applicable to Non-Banking Financial Companies (hereinafter collectively referred to as ‘NBFCs’ and individually as an ‘NBFC’) excluding Housing Finance Companies (HFCs). The applicability of the regulatory provisions regarding disclosure requirements under these Directions are aligned with the regulatory structure for NBFCs set out in Reserve Bank of India (Non-Banking Financial Companies – Registration, Exemptions and Framework for Scale Based Regulation) Directions, 2025 as indicated in the corresponding paragraphs.
Chapter II - Balance sheet and Profit and Loss Account A. Preparation of the balance sheet and profit and loss account 4. An NBFC shall prepare its balance sheet and profit and loss account, as prescribed under the Companies Act, 2013, as on March 31 every year. Whenever an NBFC intends to extend the date of its balance sheet, as per provisions of the Companies Act, 2013, it shall take prior approval of the Reserve Bank before approaching the Registrar of Companies for this purpose. Explanation - Even in a case where RBI and the Registrar of Companies grant extension of time, the NBFC shall furnish to RBI a proforma balance sheet (unaudited) as on March 31 of the year and the statutory returns due on the said date. Every NBFC shall finalise its balance sheet within a period of 3 months from the date to which it pertains. B. Accounting standards to be followed 5. An NBFC covered by Rule 4 of the Companies (Indian Accounting Standards) Rules, 2015, (‘Ind AS’) shall prepare its financial statements in accordance with Ind AS notified by the Government of India and shall comply with the regulatory guidance specified in paragraph 6 of this Master Direction. Other NBFCs shall comply with the requirements of Accounting Standards notified under the Companies (Accounting Standards) Rules, 2021, as amended from time to time, in so far as they are not inconsistent with any of Directions / Guidelines issued by RBI. C. Guidance on specific issues with respect to certain Accounting Standards 6. An NBFC that is required to comply with Ind AS shall adhere to instructions given in the following paragraphs. These instructions focus on the need to ensure consistency in the application of the accounting standards in specific areas, including asset classification and provisioning. These instructions and guidelines relate to specific prudential aspects of Ind AS implementation by NBFCs and are not meant to provide a comprehensive commentary on the accounting standards or comprehensive technical interpretation of the standards, nor intended to cover all possible situations. Accordingly, with respect to matters not dealt in these Directions, an NBFC is required to refer to the notified accounting standards, application guidance, educational material and other clarifications issued by the Institute of Chartered Accountants of India (ICAI). (1) The responsibility of preparing and ensuring fair presentation of the financial statements of an NBFC vests primarily with its Board of Directors. The Reserve Bank expects a high-quality implementation of Ind AS which will require detailed analysis, application of judgment and detailed documentation to support judgments. (2) Governance Framework (i) In view of the criticality of the nature of the business model in determining the classification of financial assets and restrictions on subsequent reclassification, an NBFC is advised to put in place Board approved policies that clearly articulate and document its business models and portfolios. The NBFC shall also articulate the objectives for managing each portfolio. (ii) NBFC shall frame its policy for sales out of amortised cost business model portfolios and disclose the same in its notes to financial statements. (iii) The Reserve Bank expects the Board of Directors to approve sound methodologies for computation of Expected Credit Losses (ECL) that address policies, procedures and controls for assessing and measuring credit risk on all lending exposures, commensurate with the size, complexity and risk profile specific to the NBFC. The parameters and assumptions considered as well as their sensitivity to the ECL output should be documented. An NBFC is advised to not make changes in the parameters, assumptions and other aspects of its ECL model for the purposes of profit smoothening. The rationale and justification for any change in the ECL model shall be documented and approved by the Board. Similarly, any adjustments to the model output (i.e., a management overlay) shall be approved by the Audit Committee of the Board (ACB) and its rationale and basis shall be clearly documented. Note – An NBFC / ARC may draw reference to ‘Guidance on Credit Risk and Accounting for Expected Credit Losses’ issued by Basel Committee on Banking Supervision (BCBS) in December 2015, which is structured around 11 principles out of which first eight principles deal with supervisory guidance and inter-alia cover Board / Senior Management’s responsibilities, adoption of sound methodologies for credit risk measurement, disclosure requirements etc. (iv) Ind AS 109 does not explicitly define default but requires entities to define default in a manner consistent with that used for internal credit risk management. It is recommended that the definition of default adopted for accounting purposes is guided by the definition used for regulatory purposes. The ACB should approve the classification of accounts that are past due beyond 90 days but not treated as impaired, with the rationale for the same clearly documented. Further, the number of such accounts and the total amount outstanding and the overdue amounts shall be disclosed in the notes to the financial statements. Note - Paragraph B5.5.37 of Ind AS 109 states that “…an entity shall apply a default definition that is consistent with the definition used for internal credit risk management purposes for the relevant financial instrument and consider qualitative indicators (for example, financial covenants) when appropriate. However, there is a rebuttable presumption that default does not occur later than when a financial asset is 90 days past due unless an entity has reasonable and supportable information to demonstrate that a more lagging default criterion is more appropriate. The definition of default used for these purposes shall be applied consistently to all financial instruments unless information becomes available that demonstrates that another default definition is more appropriate for a particular financial instrument.” (v) Regardless of the way in which the NBFC assesses significant increase in credit risk, there is a rebuttable presumption under Ind AS 109 that the credit risk on a financial asset has increased significantly since initial recognition when contractual payments are more than 30 days past due. Ind AS 109 also permits that an NBFC can rebut this presumption if it has reasonable and supportable information that demonstrates that the credit risk has not increased significantly since initial recognition even though the contractual payments are more than 30 days past due. An NBFC should educate its customers on the need to make payments in a timely manner. However, in limited circumstances, where an NBFC rebuts the presumption, it shall be done only with clear documentation of the justification for doing so. All such cases shall be placed before the ACB. The NBFC shall not defer the recognition of significant increase in credit risk for any exposure that is overdue beyond 60 days. (3) Prudential Floor for Expected Credit Loss (ECL) (i) An NBFC shall hold impairment allowances as required by Ind AS. In parallel, the NBFC shall also maintain the asset classification and compute provisions as per extant prudential norms on Income Recognition, Asset Classification and Provisioning (IRACP) including borrower / beneficiary wise classification, provisioning for standard as well as restructured assets, NPA ageing, etc. A comparison (as per the template in paragraph 15(13) below) between provisions required under IRACP and impairment allowances made under Ind AS 109 shall be disclosed by the NBFC in the notes to its financial statements to provide a benchmark to it Boards, supervisors of the Reserve Bank and other stakeholders, on the adequacy of provisioning for credit losses. (ii) Where impairment allowance under Ind AS 109 is lower than the provisioning required under IRACP (including standard asset provisioning), the NBFC shall appropriate the difference from its net profit or loss after tax to a separate ‘Impairment Reserve’. The balance in the ‘Impairment Reserve’ shall not be reckoned for regulatory capital. Further, no withdrawals shall be permitted from this reserve without prior permission from the Department of Supervision of the Reserve Bank. (iii) The requirement for ‘Impairment Reserve’ shall be reviewed, going forward. D. Other instructions 7. An NBFC shall separately disclose in its balance sheet the provisions made as per the Reserve Bank’s guidelines without netting them from the income or against the value of assets. 8. Provisions, created by an NBFC, shall be distinctly indicated under separate heads of account as under: (i) provisions for bad and doubtful debts; and (ii) provisions for depreciation in investments 9. Provisions shall not be appropriated from the general provisions and loss reserves held, if any, by the NBFC. Provisions for each year shall be debited to the profit and loss account. The excess of provisions, if any, held under the heads general provisions and loss reserves may be written back without making adjustment against them.
Chapter III - Disclosure in Financial Statements – Notes to Accounts A. General 10. An NBFC shall make disclosures in its financial statements in accordance with the guidelines in these Directions, applicable accounting standards, laws and regulations. 11. The formats for disclosures specified in this Master Direction are common templates for all categories of NBFCs. An individual NBFC may omit those line items / disclosures which are not applicable / not permitted or with no exposure / no transaction both in the current year and previous year. The disclosures specified in this Master Direction are in addition to and not in substitution of the disclosure requirements specified under other laws, regulations, or accounting and financial reporting standards. More comprehensive disclosures than the minimum required are encouraged, especially if such disclosures significantly aid in the understanding of the financial position and performance. 12. It may be noted that mere mention of an activity, transaction or item in the disclosure template does not imply that it is permitted, and an NBFC shall refer to the extant statutory and regulatory requirements while determining the permissibility or otherwise of an activity or transaction. 13. An NBFC shall disclose comparative information in respect of the previous period for all amounts reported in the current period’s financial statements. Further, the NBFC shall include comparative information for narrative and descriptive information if it is relevant to understanding the current period’s financial statements. B. Presentation B.1 Schedule to the balance sheet 14. An NBFC shall append to its balance sheet as prescribed under the Companies Act, 2013, the particulars in the schedule as per format given in Annex I.
C. Disclosure requirements C.1 Disclosure requirements for all NBFCs 15. An NBFC shall make following disclosures in notes to accounts to the financial statements. (1) Loans against gold and silver collateral (a) Details of loans extended against eligible gold and silver collateral
Note - (i) Information may be disclosed separately for loans against gold collateral and loans against silver collateral (ii) Average LTV ratio is calculated as ratio of sum of LTVs of loans at the time of sanction to total number of such loans. (b) Details of gold and silver collateral and auctions
Note - (i) Weight and value of collateral to be calculated in accordance with Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025 (ii) Unclaimed gold or silver collateral means as defined under Reserve Bank of India (Non-Banking Financial Companies – Credit Facilities) Directions, 2025 (iii) An NBFC shall also provide details of whether any of its sister concerns participated in the auction. (iv) An NBFC shall disclose in its balance sheet the percentage of loans granted against the collateral of gold jewellery to its total assets
(2) Disclosure related to project finance An NBFC shall make appropriate disclosures related to project finance as below:
(3) Disclosures relating to securitisation The originators should indicate the outstanding amount of securitised assets as per books of the Special Purpose Entities (SPEs) and total amount of exposures retained by the originator as on the date of balance sheet to comply with the Minimum Retention Requirement (MRR). These figures shall be based on the information duly certified by the SPE’s auditors obtained by the originator from the SPE. These disclosures should be made in the format given in the table below.
Note – An NBFC shall provide table separately for ‘Simple, Transparent and Comparable’ (STC) and non-STC transactions. (4) Disclosure of transfer of loan exposure A lender shall make appropriate disclosures related to the total amount of loans not in default / stressed loans transferred and acquired to / from other entities as prescribed below, on a quarterly basis: (i) In respect of loans not in default that are transferred or acquired, the disclosures should cover, inter alia, aspects such as weighted average maturity, weighted average holding period, retention of beneficial economic interest, coverage of tangible security coverage, and rating-wise distribution of rated loans. Specifically, a transferor should disclose all instances where it has agreed to replace loans transferred to transferee(s) or pay damages arising out of any representation or warranty. The disclosures should also provide break-up of loans transferred / acquired through assignment / novation and loan participation. (ii) In the case of stressed loans transferred or acquired, the following disclosures should be made:
The transferor(s) should also make appropriate disclosures with regard to the quantum of excess provisions reversed to the profit and loss account on account of sale of stressed loans. Also, the lenders should disclose the distribution of the SRs held by them across the various categories of Recovery Ratings assigned to such SRs by the credit rating agencies. (5) Disclosure on restructuring of advances (i) For non-deposit taking NBFCs with asset size less than ₹500 crore An NBFC shall disclose information relating to number and amount of advances restructured, and the amount of diminution in the fair value of the restructured advances as per the format given below. The information shall be required for advances restructured under CDR Mechanism, SME Debt Restructuring Mechanism and other categories separately. The NBFC shall disclose the total amount outstanding in all the accounts / facilities of borrowers whose accounts have been restructured along with the rest ructured part or facility. This means even if only one of the facilities / accounts of a borrower has been restructured, the NBFC shall also disclose the entire outstanding amount pertaining to all the facilities / accounts of that particular borrower. The disclosure format prescribed below, inter-alia, includes the following: (a) Details of accounts restructured on a cumulative basis excluding the standard restructured accounts which cease to attract higher provision and risk weight (if applicable); (b) Provisions made on restructured accounts under various categories; and (c) Details of movement of restructured accounts. This implies that once the higher provisions on restructured advances (classified as standard either ab initio or on upgradation from NPA category) revert to the normal level on account of satisfactory performance during the prescribed period, such advances shall no longer be required to be disclosed by an NBFC as restructured accounts in the "Notes on Accounts" in its Annual Balance Sheets. However, the provision for diminution in the fair value of restructured accounts on such restructured accounts shall continue to be maintained by the NBFC as per the existing instructions. Disclosure of restructured accounts
(ii) Particulars of resolution plan and restructuring An NBFC covered by the ‘Prudential Framework for Resolution of Stressed Assets’ issued vide Reserve Bank of India (Non-Banking Financial Companies – Resolution of Stressed Assets) Directions, 2025 shall make appropriate disclosures in its financial statements relating to resolution plans implemented. As per the referenced circular, acquisition of shares due to conversion of debt to equity during a restructuring process shall be exempted from regulatory ceilings / restrictions on Capital Market Exposures, investment in Para-Banking activities and intra-group exposure. However, details of the same shall be disclosed by an NBFC in the ‘Notes to Accounts’ to Annual Financial Statements. (6) Exposure (i) Exposure to real estate sector
(ii) Exposure to capital market
Note – An NBFC may omit those line items which are not applicable / not permitted or have nil exposure both in current and previous year. Further, exposures against pledge of shares by promoters of a company shall be shown separately under the respective line items. (iii) Sectoral exposure
Note - i. Total exposure includes on balance sheet and off-balance sheet exposure. ii. The disclosures as above shall be based on the sector-wise and industry-wise bank credit (SIBC) return submitted by scheduled commercial banks to the Reserve Bank and published by Reserve Bank as ‘Sectoral Deployment of Bank Credit’. iii. In the disclosures as above, if within a sector, exposure to a specific sub-sector / industry is more than 10 per cent of Tier 1 Capital of an NBFC, the same shall be disclosed separately within that sector. Further, within a sector, if exposure to specific sub-sector / industry is less than 10 per cent of Tier 1 Capital, such exposures shall be clubbed and disclosed as “Others” within that sector. (iv) Intra-group exposures An NBFC shall make the following disclosures for the current year with comparatives for the previous year: (a) Total amount of intra-group exposures (b) Total amount of top 20 intra-group exposures (c) Percentage of intra-group exposures to total exposure of the NBFC on borrowers/customers (v) Unhedged foreign currency exposure An NBFC shall disclose details of its unhedged foreign currency exposures. Further, it shall also disclose its policies to manage currency induced risk. (7) Related party disclosure
@ Disclosures for directors and relatives of directors should be made separately in separate columns from other KMPs and relatives of other KMPs. # The outstanding at the year end and the maximum during the year are to be disclosed. *Specify item if total for the item is more than 5 per cent of total related party transactions. Related parties would include trusts and other bodies in which the NBFC can directly or indirectly (through its related parties) exert control or significant influence. (i) Related party, in the context of the aforementioned disclosure, shall include all related parties as per the applicable accounting standards. Further, related party shall also include following related parties defined under Section 2(76) of the Companies Act, 2013. (a) key managerial personnel or his relative; (b) a firm, in which a director, manager or his relative is a partner; (c) a private company in which a director or manager or his relative is a member or director; (d) a public company in which a director or manager is a director or holds along with his relatives, more than two per cent. of its paid-up share capital; (e) any body corporate whose Board of Directors, managing director or manager is accustomed to act in accordance with the advice, directions or instructions of a director or manager; (f) any person on whose advice, directions or instructions a director or manager is accustomed to act: Provided that nothing in clauses (f) and (g) shall apply to the advice, directions or instructions given in a professional capacity; (ii) At a minimum, Key Management Personal (KMPs) shall include following key managerial personnel as per section 2(51) of the Companies Act, 2013. (a) the Chief Executive Officer or the managing director or the manager (b) the company secretary (c) the whole-time director (d) the Chief Financial Officer (e) such other officer, not more than one level below the Directors who is in whole-time employment, designated as key managerial personnel by the Board; and (f) such other officer as may be prescribed (iii) Relatives of KMPs at the minimum, shall include following relatives as defined under section 2(77) of the Companies Act, 2013 and Rule 4 of the Companies (Specification of definitions details) Rules, 2014. (a) they are members of a Hindu Undivided Family; (b) they are husband and wife; or (c) one person is related to the other in such manner as may be prescribed; (iv) A person shall be deemed to be the relative of another, if he or she is related to another in the following manner, namely:- (a) Father; Provided that the term “Father” includes step-father. (b) Mother: Provided that the term “Mother” includes the step-mother. (c) Son: Provided that the term “Son” includes the step-son. (d) Son’s wife. (e) Daughter. (f) Daughter’s husband. (g) Brother: Provided that the term “Brother” includes the step-brother; (h) Sister: Provided that the term “Sister” includes the step-sister. (8) Disclosure of complaints (i) Summary information on complaints received by an NBFC from customers and from the Offices of Ombudsman
(ii) Top five grounds of complaints received by the NBFC from customers
The list of grounds of complaints given below are indicative only.
(9) Loans to directors, senior officers and relatives of directors
(10) Currency futures Disclosures shall be made in the balance sheet relating to transactions undertaken in the currency futures market, in accordance with the guidelines issued by SEBI. (11) Liquidity An NBFC shall publicly disclose information as given below on a quarterly basis on the official website of the company and in the annual financial statements as notes to account that enables market participants to make an informed judgment about the soundness of its liquidity risk management framework and liquidity position. (i) Funding Concentration based on significant counterparty (both deposits and borrowings)
(ii) Top 20 large deposits (amount in ₹ crore and percent of total deposits) (iii) Top 10 borrowings (amount in ₹ crore and percent of total borrowings) (iv) Funding Concentration based on significant instrument/product
(v) Stock Ratios (a) Commercial papers as a percent of total public funds, total liabilities and total assets (b) Non-convertible debentures (original maturity of less than one year) as a percent of total public funds, total liabilities and total assets (c) Other short-term liabilities, if any as a percent of total public funds, total liabilities and total assets (vi) Institutional set-up for liquidity risk management Provided that, the requirements stipulated in this sub-paragraph are applicable to non-deposit taking NBFCs with asset size of ₹100 crore and above, Core Investment Companies and all deposit taking NBFCs. Provided further that, the requirements stipulated in this sub-paragraph are not applicable to Type-I NBFC and Non Operative Financial Holding Company (NOFHCs). (12) Credit Default Swaps (i) With reference to CDS transactions undertaken by an NBFC, it shall disclose following details in its notes to accounts.
(13) Comparison between provisions required under IRACP and impairment allowances made under Ind AS 109 An NBFC, implementing Ind AS, shall make following disclosure comparing provisioning under IRACP and impairment allowance under Ind AS 109.
C.2 Disclosure requirements for NBFCs-Middle Layer (NBFCs-ML) and Upper Layer (NBFCs-UL) 16. An NBFC shall make following disclosures in notes to accounts to the financial statements. (1) Summary of significant accounting policies An NBFC shall disclose the accounting policies regarding key areas of operations at one place along with notes to accounts in its financial statements. A suggestive list includes – Basis of Accounting, Transactions involving Foreign Exchange, Investments - Classification, Valuation, etc., Advances and Provisions thereon, Fixed Assets and Depreciation, Revenue Recognition, Employee Benefits, Provision for Taxation, Net Profit, etc. (2) Capital
Provided that, non-deposit taking NBFC issuing Perpetual Debt Instrument, shall make suitable disclosures in its Annual Report about: (i) Amount of funds raised through PDI during the year and outstanding at the close of the financial year; (ii) Percentage of the amount of PDI of the amount of its Tier 1 capital; (iii) Mention the financial year in which interest on PDI has not been paid (3) Investments
(4) Derivatives (i) Forward rate agreement / interest rate swap
(Amount in ₹ crore)
(ii) Exchange traded interest rate (IR) derivatives (Amount in ₹ crore)
(iii) Disclosures on risk exposure in derivatives Qualitative disclosures An NBFC shall describe its risk management policies pertaining to derivatives with particular reference to the extent to which derivatives are used, the associated risks and business purposes served. The discussion shall also include: (a) The structure and organisation for management of risk in derivatives trading, (b) The scope and nature of risk measurement, risk reporting and risk monitoring systems, (c) Policies for hedging and/or mitigating risk and strategies and processes for monitoring the continuing effectiveness of hedges/mitigants, and (d) Accounting policy for recording hedge and non-hedge transactions; recognition of income, premiums and discounts; valuation of outstanding contracts; provisioning, collateral and credit risk mitigation. Quantitative disclosures
(5) Asset liability management (Maturity pattern of certain items of Assets and Liabilities)
(6) Exposures (i) Details of financing of parent company products (ii) Details of Single Borrower Limit (SGL)/Group Borrower Limit (GBL) exceeded by the NBFC An NBFC shall make appropriate disclosure in respect of the exposures where it had exceeded the prudential exposure limits during the year. Computation of exposure limits shall be reckoned as per Credit/investment concentration Norms/Large Exposure Framework prescribed by the Reserve Bank, as applicable. Note – For computation of exposure limit an NBFC shall refer Reserve Bank of India (Non-Banking Financial Companies – Concentration Risk Management) Directions, 2025. (iii) Unsecured advances (a) For determining the amount of unsecured advances, the rights, licenses, authorisations, etc., charged to an NBFC as collateral in respect of projects (including infrastructure projects) financed by it, shall not be reckoned as tangible security. Hence, such advances shall be reckoned as unsecured. (b) The NBFC shall also disclose the total amount of advances for which intangible securities such as charge over the rights, licenses, authority, etc. has been taken as also the estimated value of such intangible collateral. The disclosure shall be made under a separate head in notes to account. This would differentiate such loans from other entirely unsecured loans. (7) Corporate governance Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (Paragraph C of Schedule V - Annual Report) as amended from time to time, specifies disclosures to be made in the section on the corporate governance of the Annual Report. With respect to the corporate governance report, non-listed NBFC should also endeavor to make full disclosure in accordance with the requirement of SEBI (LODR) Regulation, 2015. Non-listed NBFC at the minimum should disclose following under the corporate governance section of the annual report. (i) Composition of the Board
(ii) Details of change in composition of the Board during the current and previous financial year.
Where an independent director resigns before expiry of her/ his term, the reasons for resignation as given by her/him shall be disclosed. Details of any relationship amongst the directors inter-se shall be disclosed (iii) Committees of the Board and their composition (a) Mention the names of the committees of the Board. (b) For each committee, mention the summarised terms of reference and provide the following details.
(iv) General body meetings Give details of the date, place and special resolutions passed at the General Body Meetings.
(v) Details of non-compliance with requirements of Companies Act, 2013 Give details a nd reasons of any default in compliance with the requirements of Companies Act, 2013, including with respect to compliance with accounting and secretarial standards. (vi) Details of penalties and strictures An NBFC shall disclose details of penalties or stricture imposed on it by the Reserve Bank or any other statutory / regulatory authority. Further, directions on the basis of inspection reports or other adverse findings shall also be disclosed in the public domain. (vii) Management discussion and analysis report As part of the Directors’ report or as an addition thereto, a Management Discussion and Analysis report shall form part of the Annual Report to the shareholders. This Management Discussion & Analysis shall include discussion on the following matters within the limits set by the company’s competitive position: (a) Industry structure and developments. (b) Opportunities and Threats. (c) Segment–wise or product-wise performance. (d) Outlook. (e) Risks and concerns. (f) Internal control systems and their adequacy. (g) Discussion on financial performance with respect to operational performance. (h) Material developments in Human Resources/Industrial Relations front, including number of people employed. (8) Breach of covenant An NBFC shall disclose all instances of breach of covenant of loan availed or debt securities issued. (9) Divergence in Asset Classification and Provisioning An NBFC shall disclose details of divergence as per the table given below, if either or both of the following conditions are satisfied: a) the additional provisioning requirements assessed by the Reserve Bank exceeds five percent of the reported profits before tax and impairment loss on financial instruments for the reference period, or b) the additional Gross NPAs identified by RBI exceeds five per cent of the reported Gross NPAs for the reference period.
* March 31, 20XX is the close of the reference period in respect of which divergences were assessed (10) Registration from other financial sector regulators An NBFC shall disclose registration / license / authorisation, by whatever name called, obtained from other financial sector regulators. Information namely, area, country of operation and joint venture partners with regard to joint ventures and overseas subsidiaries shall also be disclosed. (11) Disclosure of ratings An NBFC shall make disclosure ratings assigned by Credit Rating Agencies to it and migration of its ratings during the year. (12) Remuneration of Directors An NBFC shall disclose all pecuniary relationship or transactions of the non-executive directors vis-à-vis the company. (13) Net Profit or Loss for the period, prior period items and changes in accounting policies Since the format of the Profit and Loss account does not specifically provide for disclosure of the impact of prior period items on the current year's profit and loss, such disclosures, wherever warranted, shall be made by an NBFC. (14) Revenue Recognition An NBFC shall disclose the circumstances in which revenue recognition has been postponed pending the resolution of significant uncertainties. (15) Provisions and contingencies An NBFC shall disclose details of provisions and contingencies in following format.
(16) Draw down from Reserves An NBFC shall make suitable disclosures regarding any draw down of reserves. (17) Concentration of deposits, advances, exposures and NPAs (i) Concentration of Deposits (for deposit taking NBFCs)
(ii) Concentration of Advances
(iii) Concentration of Exposures (Amount in ₹ crore)
(iv) Concentration of NPAs
(18) Movement of NPAs
(19) Overseas assets (for those with joint ventures and subsidiaries abroad)
(20) Off-balance sheet SPVs sponsored (which are required to be consolidated as per accounting norms)
(21) Off-balance sheet exposures and structured products An NBFC shall provide details of details of all off-balance sheet exposures and structured products issued by it. (22) Disclosure on Liquidity Coverage Ratio (LCR) A non-deposit taking systemically important NBFC with asset size of ₹ 5,000 crore and above (except Core Investment Company, Type 1 NBFC-ND1, Non-Operating Financial Holding Company and Standalone Primary Dealer) and a deposit taking NBFC irrespective of the asset size shall adhere to the following LCR Disclosure standards: (i) An NBFC shall disclose information on its LCR every quarter. Further, the NBFC in its annual financial statements, under notes to accounts, shall disclose information on LCR for all the four quarters of the relevant financial year in the format given below. (ii) Data must be presented as simple averages of daily observations over the previous quarter (i.e., the average is calculated over a period of 90 days). (iii) In addition to the disclosures required by the format given below, the NBFC shall provide sufficient qualitative discussion (in its annual financial statements under notes to accounts) around the LCR to facilitate understanding of the results and data provided. For example, where significant to the LCR, the NBFC could discuss: (a) the main drivers of its LCR results and the evolution of the contribution of inputs to the LCR’s calculation over time; (b) intra-period changes as well as changes over time; (c) the composition of High Quality Liquid Assets (HQLAs); (d) concentration of funding sources; (e) derivative exposures and potential collateral calls; (f) currency mismatch in the LCR; (g) other inflows and outflows in the LCR calculation that are not captured in the LCR common template but which the institution considers to be relevant for its liquidity profile.
* Unweighted values must be calculated as outstanding balances maturing or callable within 30 days (for inflows and outflows). $ Weighted values must be calculated after the application of respective haircuts (for HQLA) and stress factors on inflow and outflow. # Components of HQLA need to be disclosed. (23) Currency Options Disclosures shall be made in the balance sheet regarding transactions, if any, undertaken in the designated currency options exchanges recognized by SEBI, in accordance with the guidelines issued by SEBI. C.3 Disclosure requirements for NBFC - Upper Layer (UL) 17. An NBFC-UL shall be mandatorily listed within three years of identification as NBFC-UL. Accordingly, upon being identified as NBFC-UL, an unlisted NBFC-UL shall draw up a Board approved roadmap for compliance with the disclosure requirements of a listed company under the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015 (as amended from time to time). Chapter IV - Consolidated Financial Statements 18. An NBFC may be guided by general clarifications issued by the ICAI from time to time. A parent company, presenting the consolidated financial statements (CFS), shall consolidate the financial statements of all subsidiaries - domestic as well as foreign. The reasons for not consolidating a subsidiary shall be disclosed in the CFS. The responsibility of determining whether a particular entity shall be included or not for consolidation would be that of the management of the parent entity. In case, its Statutory Auditors are of the opinion that an entity which ought to have been consolidated has been omitted, they shall incorporate their comments in this regard in the "Auditors Report". Provided that, NBFCs-BL are exempt from the requirements contained in this paragraph. Chapter V - Repeal and other provisions A. Repeal and saving 19. With the issue of these Directions, the existing Directions, instructions, and guidelines relating to Financial Statements- Presentation and Disclosures as applicable to Non-Banking Financial Companies stand repealed, as communicated vide notification dated XX, 2025. The directions, instructions, and guidelines repealed prior to the issuance of these Directions shall continue to remain repealed. 20. Notwithstanding such repeal, any action taken or purported to have been taken, or initiated under the repealed Directions, instructions, or guidelines shall continue to be governed by the provisions thereof. All approvals or acknowledgments granted under these repealed lists shall be deemed as governed by these Directions. B. Application of other laws not barred 21. The provisions of these Directions shall be in addition to, and not in derogation of the provisions of any other laws, rules, regulations or directions, for the time being in force. C. Interpretations 22. For the purpose of giving effect to the provisions of these Directions or in order to remove any difficulties in the application or interpretation of the provisions of these Directions, the RBI may, if it considers necessary, issue necessary clarifications in respect of any matter covered herein and the interpretation of any provision of these Directions given by the RBI shall be final and binding.
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