Reserve Bank of India proposes tighter disclosure norms for banks; quarterly leverage ratio reporting likely

The Reserve Bank of India has proposed tighter disclosure norms for banks in a draft framework aimed at improving transparency and strengthening reporting standards in the banking sector.

The draft proposes wider disclosures on capital adequacy, liquidity, leverage and risk exposure in line with global Basel norms.

All banks may need to share more information

The proposed framework says all banks, including unlisted lenders, may have to disclose additional financial and risk-related information publicly.

Banks could also be required to report leverage ratios every quarter and submit the same data to the RBI regularly. The central bank’s proposal is aimed at improving visibility into the financial health of banks and strengthening market discipline.

Board approval likely for disclosure policies

Under the draft rules, banks may need to put in place a formal disclosure policy approved by their boards. The RBI has also proposed that bank directors certify the accuracy of disclosures made by their institutions. Banks may additionally be required to create a dedicated disclosure section on their websites to make information easily accessible.

Banks may need to keep records for 10 years

The draft framework proposes a minimum 10-year record retention requirement for disclosures. According to the RBI, the proposal is intended to improve governance practices and support long-term regulatory supervision.

Draft norms proposed from September 2026

The proposed disclosure framework could come into effect from September 30, 2026. The Reserve Bank of India is expected to seek stakeholder feedback before finalising the norms.