RBI alters financial disclosure regime for Payments Banks from 1 April 2027

The Reserve Bank of India has issued the Reserve Bank of India (Payments Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026, making a focused change to the disclosure framework applicable to Payments Banks. This change, notified on 30 July 2026, becomes effective from 1 April 2027 and specifically removes the requirement relating to disclosure of remuneration contained in paragraph 10(11) of the original 2025 Directions.

Although narrow in scope, the amendment is part of a broader regulatory alignment exercise linked to Basel Pillar 3 disclosure standards applicable to Small Finance Banks, and reflects RBI’s ongoing calibration of disclosure requirements across different categories of regulated entities.

Background of the original disclosure framework for Payments Banks

The 2025 Directions on financial statements and disclosures

The Reserve Bank of India (Payments Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 laid down a comprehensive framework governing how Payments Banks must:

  • Present their financial statements,
  • Disclose key financial and non-financial metrics, and
  • Provide transparency on governance, risk and other regulatory aspects.

These Directions were part of RBI’s broader attempt to create a consistent, comparable and transparent reporting regime for specialized banking entities such as Payments Banks. Among various disclosure requirements, paragraph 10 dealt with specific items to be reported in the notes to accounts, including, inter alia, disclosures on remuneration of key managerial personnel and other related matters under paragraph 10(11).

Evolution of prudential norms and Basel Pillar 3 disclosures

The latest amendment to the Payments Banks Directions must be viewed against the backdrop of:

  • Reserve Bank of India (Small Finance Banks – Prudential Norms on Capital Adequacy) Fifth Amendment Directions, 2026, and
  • The Basel Pillar 3 disclosure framework, which emphasises market discipline through enhanced transparency on capital, risk exposures and risk assessment processes.

The Fifth Amendment Directions, 2026, specifically addressed Basel Pillar 3 disclosures for Small Finance Banks. Following this, RBI reviewed the corresponding disclosure expectations for Payments Banks to ensure consistency, avoid duplication and streamline the regulatory approach across similar categories of banks.

Statutory power under the Banking Regulation Act, 1949

RBI has invoked its powers under:

  • section 35A of the Banking Regulation Act, 1949, and
  • All other enabling provisions under applicable laws,

to issue the Reserve Bank of India (Payments Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026.

By relying on section 35A, RBI confirms that:

  • It is acting in the public interest, and
  • It considers the amendment necessary and expedient to regulate the conduct of banking business by Payments Banks.

Note: Once Directions are issued under section 35A, they are mandatory for all regulated entities to whom they apply, unless specifically exempted or modified by subsequent Directions.

Formal particulars of the amendment notification

The amendment has been issued under the following reference:

  • Number: RBI/DOR/2026-27/209
  • Circular: DOR.ACC.REC.No.187/21.04.018/2026-27
  • Date of issue: 30 July 2026
  • Signatory: (Sunil T S Nair), Chief General Manager

Payments Banks must carefully note these details for internal compliance mapping, record-keeping and regulatory reporting.

Scope and content of the Second Amendment Directions, 2026

Short title of the Amendment Directions

RBI has formally named the new set of instructions as:

Reserve Bank of India (Payments Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026

This clarifies that: