meta_id 3367061

On July 30, 2026, the Reserve Bank of India (RBI) issued the Reserve Bank of India (Commercial Banks – Asset Liability Management) Second Amendment Directions, 2026, amending the Commercial Banks – Asset Liability Management Directions, 2025. The amendment follows the RBI's issuance of the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Seventh Amendment Directions, 2026, which introduced changes to Basel Pillar 3 disclosures. The RBI exercised powers conferred by Section 35A of the Banking Regulation Act, 1949, to issue the amendment in the public interest. The amendment modifies two key paragraphs of the existing Directions. Paragraph 204 is amended to clarify that for Liquidity Coverage Ratio (LCR) disclosure template and related instructions, commercial banks shall refer to relevant instructions in the Reserve Bank of India (Commercial Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 and the Reserve Bank of India (Commercial Banks - Prudential Norms on Capital Adequacy) Directions, 2025. Similarly, Paragraph 250 is amended to specify that for Net Stable Funding Ratio (NSFR) disclosure template and related instructions, banks shall refer to the same two sets of directions. These amendments align the asset liability management framework with updated prudential norms and disclosure requirements, ensuring consistency across the RBI's regulatory framework for commercial banks. The amendments become effective on April 1, 2027, providing commercial banks with sufficient time to implement the changes to their disclosure procedures and systems. **Reference:** Reserve Bank of India. (2026). Reserve Bank of India (Commercial Banks – Asset Liability Management) Second Amendment Directions, 2026. RBI/DOR/2026-27/205. https://www.rbi.org.in/