RBI/ 2025-26/232 DOR.CRE.REC.151/07-02-003/2025-26 November 28, 2025 Reserve Bank of India (Local Area Banks – Credit Risk Management) Directions, 2025 Table of Contents Chapter I - Preliminary 2 Chapter II - Board Approved Policies 6 Chapter III - Statutory Restrictions 7 Chapter IV - Unhedged Foreign Currency Exposure (UFCE) 11 Chapter V - Legal Entity Identifier (LEI) for Borrowers 17 Chapter VI - Valuation of Properties - Empanelment of Valuers 19 Chapter VII - Filing of Security Interest relating to Immovable (other than equitable mortgage), Movable, and Intangible Assets in CERSAI 21 Chapter VIII - Repeal and other provisions 23 Annex I 25 Introduction Local Area Banks (LABs), in the course of financial intermediation, are exposed to various financial and non-financial risks, of which credit risk is the one of the most significant risks. If not managed effectively, credit risk may have ramifications for a range of other risk categories too. As credit exposures of LABs encompass varied sectors, borrower types and products with their own idiosyncratic complexities as well as systemic implications due to interconnectedness among themselves, credit risk management of LABs involve a range of prudential tools, including statutory and regulatory restrictions / prohibitions on certain activities. Recognising this, the Reserve Bank has, from time to time, issued guidelines to strengthen credit risk management practices. Accordingly, in exercise of the powers conferred by Sections 20, 21 and 35A of the Banking Regulation Act, 1949 and all other provisions / laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) in this regard, Reserve Bank being satisfied that it is necessary and expedient in the public interest so to do, hereby issues these Directions hereinafter specified. Chapter I - Preliminary A. Short title and Commencement 1. These Directions shall be called the Reserve Bank of India (Local Area Banks – Credit Risk Management) Directions, 2025 2. These Directions shall come into effect immediately upon issuance.

RBI/2025-26/237 DOR.LRG.No.156/13-10-009/2025-26 November 28, 2025 Reserve Bank of India (Local Area Banks – Asset Liability Management) Directions, 2025 Table of Contents Chapter I – Preliminary 3 A. Short Title and Commencement 3 B. Applicability 3 C. Definitions 3 Chapter II – Role of Board 5 A. Responsibilities of the Board 5 B. Approval of policies, limits, and reviews 5 Chapter III – Asset Liability Management 6 A. Introduction 6 B. ALM Information Systems 6 C. ALM Organisation 7 D. ALM Process 8 Chapter IV – Liquidity Risk Management 9 A. Management of Liquidity Risk 9 B. Structural Liquidity Statement (SLS) 9 C. Short -Term Dynamic Liquidity (STDL) statement 10 D. Monitoring of Liquidity 10 Chapter V – Currency Risk Management 12 Chapter VI – Interest Rate Risk (IRR) Management 13 A. Introduction 13 B. Traditional Gap Analysis 13 C. Interest Rate Sensitivity (IRS) Statement 13 Chapter VII – Miscellaneous 15 A. Behavioural Patterns and Embedded Options 15 B. Internal Transfer Pricing (ITP) 15 Chapter VIII – Monitoring and Reporting 16 A. Preparation and Review of Statements 16 B. Regulatory Reporting and Periodicity of Returns 16 Chapter IX – Repeal and Other Provisions 17 A. Repeal and Saving 17 B. Application of other laws not barred 17 C. Interpretations 17 Annex – I: Structural Liquidity Statement 19 Annex – II: Short-term Dynamic Liquidity statement 23 Annex – III: Interest Rate Sensitivity Statement 25 Annex-IV: Maturity Profile – Liquidity 28 Annex V- Interest Rate Sensitivity 32 In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, the RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified. Chapter I – Preliminary A. Short Title and Commencement 1. These Directions shall be called the Reserve Bank of India (Local Area Banks – Asset Liability Management) Directions, 2025. 2. These Directions shall become effective from the date of issue.

Reserve Bank of India (Local Area Banks – Income Recognition, Asset Classification and Provisioning pertaining to Advances) Directions, 2025 Table of Contents Chapter I - Preliminary    3 A.    Short title and commencement    3 B.    Applicability    3 C.    Definitions    3 Chapter II - General Instructions    7 A.    Role of the Board    7 B.    Prudence in Lending and Consumer Education    7 C.    Disclosure Requirements    10 Chapter III - Asset Classification    11 A.    General Instructions on Asset Classification    11 B.    Classification as non-performing asset    12 C.    Accounts regularised near about the balance sheet date    14 D.    Specific cases of asset classification    14 E.    Categories of non-performing assets    20 F.    Upgradation of loan accounts classified as NPAs    21 Chapter IV - Provisioning Norms    22 A.    General Principles for Provisioning    22 B.    Provisions in respect of Standard assets    22 C.    Provisions in respect of substandard assets    24 D.    Provisions in respect of Doubtful Assets    24 E.    Provisions in respect of Loss Assets    25 F.    Prudential norms on creation and utilisation of floating provisions    25 G.    Additional Provisions at higher than prescribed rates    26 H.    Provisions under Special Circumstances    27 I.    Provisioning Coverage Ratio (PCR)    32 Chapter V - Income Recognition    33 A.    General Principles for Income Recognition    33 B.    Reversal of income upon classification as NPA    33 C.    Interest application after NPA classification    34 D.    Appropriation of recovery from NPAs    34 E.    Income recognition in special cases    34 F.    Tax treatment in respect of provisions    36 Chapter VI 

RBI/DOR/2025-26/239 DOR.STR.REC.158/21.04.048 /2025-26 November 28, 2025 Reserve Bank of India (Local Area Banks – Resolution of Stressed Assets) Directions, 2025 Table of Contents Chapter I - Preliminary 2 A. Short title and commencement 2 B. Applicability 3 C. Definitions 3 Chapter II - General Requirements 5 A. Board approved policies: 5 B. Early identification and reporting of stress 6 C. Disclosures 7 Chapter III - Prudential Norms Applicable to Restructuring 8 A. Restructuring of accounts – General Instructions 8 Chapter IV - Special Cases of Restructuring 9 A. Compromise Settlements and Technical Write-offs 9 Chapter V - Government Debt Relief Schemes (DRS) 13 A. Prudential treatment in respect of Government Debt Relief Schemes (DRS): 13 Chapter VI - Special Measures 16 A. Trade Relief Measures 16 Chapter VII - Repeal and Other Provisions 17 A. Repeal and saving 17 B. Application of other laws not barred 17 C. Interpretations 18 Annex 19 Introduction These Directions are issued with a view to providing a framework for early recognition, reporting and time bound resolution of stressed assets

RBI/2025-26/240 DOR.FIN.REC.No.159/20-16-003/2025-26 November 28, 2025 Reserve Bank of India (Local Area Banks – Treatment of Wilful Defaulters and Large Defaulters) Directions, 2025 Table of Contents Chapter I - Preliminary 3 Chapter II - Function of Board 9 Chapter III - Treatment of Wilful Defaulters 10 Chapter IV - Reporting of Wilful Defaulters and Large Defaulters 16 Chapter V - Preventive Measures and Role of Auditors 20 Chapter VI - Repeal and Other Provisions 23 Annex I - Format for submission of List of Large Defaulters 25 Annex II - Format for submission of data on cases of wilful default 28   Introduction The objective of these Directions is to provide for a non-discriminatory and transparent procedure, having regard to the principles of natural justice, for classifying a borrower as a wilful defaulter by banks. The directions also aim to put in place a system to disseminate credit information about wilful defaulters for cautioning lenders to ensure that further institutional finance is not made available to them. Accordingly, in exercise of the powers conferred by the Sections 21 and 35A of the Banking Regulation Act, 1949; and Section 11 of the Credit Information Companies (Regulation) Act, 2005, the Reserve Bank, being satisfied that it is necessary and expedient in public interest so to do, hereby, issues these Directions hereinafter specified.   Chapter I - Preliminary 1. Short title and commencement (1) These directions shall be called the Reserve Bank of India (Local Area Banks – Treatment of Wilful Defaulters and Large Defaulters) Directions, 2025. (2) These directions shall come into force with immediate effect. 2. Applicability (1) These Directions shall be applicable to Local Area Banks (hereinafter collectively referred to as ‘banks’ and individually as a ‘bank’). (2) The restrictions on further financial accommodation to wilful defaulters and provisions regarding large defaulters contained in these Directions, shall apply to all entities regulated by the Reserve Bank, irrespective of whether they fall within the definition of ‘lender’ as provided in these Directions or not.

RBI/DOR/2025-26/241 DOR.ACC.REC.No.160/21.04.018/2025-26 November 28, 2025 Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 Table of Contents Chapter-I Preliminary 3 A. Short title and commencement 3 B. Applicability 3 Chapter-II Balance Sheet and Profit and Loss Account 4 A. Format of the Balance Sheet and Profit and Loss Account 4 B. Notes and instructions for compilation 4 C. Guidance on specific issues with respect to certain Accounting Standards 29 Chapter-III Disclosure in financial statements – Notes to Accounts 40 A. General 40 B. Presentation 40 C. Disclosure requirements 40 Chapter-IV Other instructions 74 A. Inter - branch account – provisioning for net debit balance 74 B. Reconciliation of Nostro account and treatment of outstanding entries 74 C. Transfer to / appropriation from Reserve funds 75 D. Provisioning for fraud 76 E. Unreconciled balances 77 F. Deferred tax liability (DTL) on Special Reserve created under Section 36(1) (viii) of the Income Tax Act, 1961 77 G. Window dressing 77 Chapter-V Repeal and Other Provisions 78 A. Repeal and saving 78 B. Application of other laws not barred 78 C. Interpretations 79 Annex I 80 In exercise of the powers conferred by Section 35A of the Banking Regulation Act, 1949, and all other provisions / laws enabling the Reserve Bank of India (‘RBI’) in this regard, RBI being satisfied that it is necessary and expedient in the public interest so to do, hereby, issues the Directions hereinafter specified.