Particle.news
Download on the App Store

RBI Drafts Stricter Bank Disclosure Rules Under Basel III Pillar 3

The consultation aims to make bank risk reports easier to compare so markets can judge resilience more quickly.

Overview

  • the RBI, which issued the draft on Tuesday, opened comments until June 2 and plans to apply the final rules from the quarter ending September 30, 2026.
  • Banks would report every quarter in a single format on key metrics including CET1, total capital, risk‑weighted assets, leverage ratio, liquidity coverage ratio, and net stable funding ratio.
  • Lenders must explain large quarter‑to‑quarter moves in those metrics, name the drivers of the change, and describe management’s response to shifting risk.
  • Each bank must create a Regulatory Disclosure Section on its website, publish the Pillar 3 report alongside its financial statements, and keep an online archive for at least 10 years.
  • The draft lets banks omit data they judge immaterial, but they must add a plain‑language note explaining why the missing figures are not meaningful.