RBI Revises LCR and NSFR Disclosure Framework for Commercial Banks: Key Changes Effective April 1, 2027

Overview of the Amendment

The Reserve Bank of India has issued the Reserve Bank of India (Commercial Banks – Asset Liability Management) Second Amendment Directions, 2026, dated July 30, 2026. This amendment modifies the existing Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025 and has been introduced in direct consequence of the earlier issuance of the Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026, which dealt with Basel Pillar 3 disclosure requirements.

The amendment specifically targets two critical liquidity-related disclosure frameworks — the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR) — and consolidates the reference points for their respective disclosure templates and instructions under a unified regulatory framework.

Important: These amendments shall come into force with effect from April 1, 2027, giving commercial banks a defined transition window to align their disclosure systems accordingly.

The Reserve Bank exercised its powers under Section 35A of the Banking Regulation Act, 1949, along with all other applicable enabling provisions, to issue these directions. The RBI has determined that it is necessary and expedient in the public interest to bring about this modification, particularly in light of the revised Basel Pillar 3 disclosure architecture introduced through the Seventh Amendment to the Capital Adequacy Directions.

Reference Notification: RBI/DOR/2026-27/205 | DOR.ACC.REC.No.182/13-10-001/2026-27

Key Modifications Introduced

Substitution of Paragraph 204 — LCR Disclosure Template

Prior to this amendment, Paragraph 204 of the Reserve Bank of India (Commercial Banks – Asset Liability Management) Directions, 2025 contained standalone instructions regarding the Liquidity Coverage Ratio (LCR) disclosure template. The Second Amendment Directions, 2026 have now substituted Paragraph 204 in its entirety with the following revised provision:

"For LCR disclosure template and related instructions, a bank shall refer to relevant instructions in Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 and Reserve Bank of India (Commercial Banks – Prudential Norms on Capital Adequacy) Directions, 2025."

This substitution effectively redirects commercial banks to two specific regulatory instruments for all LCR-related disclosure requirements, rather than housing such instructions within the Asset Liability Management framework itself.

Substitution of Paragraph 250 — NSFR Disclosure Template

In a parallel modification, Paragraph 250 — which previously governed the Net Stable Funding Ratio (NSFR) disclosure template — has also been fully substituted under this amendment. The revised paragraph reads as follows: