Reserve Bank of India Updates Basel Pillar 3 Disclosure Framework for Banks

The Reserve Bank of India issued ten amendment directions revising Basel Pillar 3 disclosure norms for commercial banks, small‑finance banks and payments banks. The updated framework is intended to promote market discipline through comprehensive public disclosures on capital positions and risk exposures.

Disclosures apply at the top consolidated level of a banking group; entities that are not the group’s top must make standalone Pillar 3 disclosures. Banks are required to adopt a formal disclosure policy approved by their boards and to detail key policy elements in the year‑end Pillar 3 report, subject to internal review and control.

The amendments cover prudential standards on capital adequacy, asset‑liability management, governance and financial‑statement presentation. The RBI said separate templates for market risk, operational risk, counterparty credit risk, credit valuation adjustment and leverage ratio will be issued later, incorporating stakeholder feedback.