The Reserve Bank of India (RBI) on Thursday issued 10 amendment directions revising its Basel Pillar 3 disclosure framework for commercial banks, small finance banks and payments banks, with an aim to strengthen market discipline through more comprehensive public disclosures.
The final regulations come after the central bank reviewed stakeholder feedback on the draft framework directions released in May 2026.
According to the RBI, the revised framework is intended to improve transparency by requiring banks to provide detailed information on their capital position and risk exposures, enabling market participants to better assess the financial health of regulated entities.
The disclosure requirements will apply across all regulated banking entities. For banking groups, disclosures must be made at the top consolidated level, while entities that are not the top group entity will be required to publish standalone Pillar 3 disclosures.
Under the revised norms, banks must also put in place a formal disclosure policy approved by their respective boards of directors. Key elements of the policy must be included in the year-end Pillar 3 report, and all disclosures will be subject to internal review and control processes to ensure accuracy and consistency.
The RBI said the 10 amendment directions cover prudential norms relating to 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 relating to market risk, operational risk, counterparty credit risk, credit valuation adjustment and leverage ratio for commercial banks will be issued separately at a later stage.
"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.
(With inputs from ANI)
