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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Reserve Bank of India (Non-Banking Financial Companies - Financial Statements: Presentation and Disclosures) Directions, 2025

28-Nov-2025 | RBI/DOR/2025-26/359 DOR.ACC.REC.No.278/21.04.018/2025-26

RBI has issued Reserve Bank of India (Non-Banking Financial Companies - Financial Statements: Presentation and Disclosures) Directions, 2025, effective from 28th Nov 2025. Applicability - The Directions apply to all major NBFC categories, including NBFC-D, NBFC-ICC, NBFC-Factor, NBFC-MFI, NBFC-IFC, IDF-NBFC, Housing Finance Companies (HFCs), Core Investment Companies (CICs), or Excluded entities include NBFC-P2P, NBFC-AA, SPDs, NOFHCs, and NBFCs without public funds & without customer interface. Key Highlights: - NBFCs must prepare and present financial statements in accordance with Ind AS, where applicable, or Accounting Standards under Companies (AS) Rules for non-Ind AS NBFCs. - Financial statements must comply with RBI's prescribed formats, schedules, and disclosure tables, ensuring uniformity across the sector. - NBFCs must provide comprehensive disclosures relating to Capital Adequacy, Exposure and Concentration, Asset Quality, Liquidity Indicators, Related Party Transactions, Investments, and Securitisation & Assignment. - The Board must approve presentation formats and disclosure policy, ensure accuracy, completeness, and compliance and oversee internal control systems for financial reporting. - Enhanced disclosures apply on NBFC-ML and NBFC-UL, including Corporate governance reports, Risk management practices, Concentration of funding sources, and Compliance with SBR regulatory caps. - NBFCs must submit all returns prescribed by RBI's Department of Supervision, including NBS returns, ALM returns, Supervisory exposure returns, and Securitisation/assignment returns.

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