Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Amendment Directions, 2026

**Executive Summary** This document outlines Amendment Directions issued by the Reserve Bank of India (RBI) concerning financial statement presentations and disclosures for Urban Co-operative Banks (UCBs). The amendments, effective April 1, 2026, primarily focus on enhancing disclosure requirements related to exposures to related parties. UCBs can choose to implement these amendments earlier than the effective date. **Key Points / Main Content** * **Amendment Overview:** The document modifies the existing 'Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025'. * **Disclosure in Financial Statements:** * A new sub-sub paragraph (viii) is inserted under sub-paragraph 10(5) on 'Exposures' in Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts'. * This addition mandates the disclosure of details concerning exposures to related parties, as defined in 'Reserve Bank of India (Urban Co-operative Banks – Credit Risk Management) Directions, 2025'. * **Table Format for Disclosure:** The document provides a table format for disclosing the following details: * Loans to Related Parties * Aggregate value of loans sanctioned to related parties during the year. * Aggregate value of outstanding loans to related parties as on 31st March. * Aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on 31st March. * Aggregate value of outstanding loans to related parties categorized as: * Special Mention Accounts as on 31st March * Non-Performing Assets as on 31st March * Amount of provisions held in respect of loans to related parties as on 31st March. * Contracts and Arrangements involving Related Parties * Aggregate value of contracts and arrangements awarded to related parties during the year. * Aggregate value of outstanding contracts and arrangements involving related parties as on 31st March. * **Effective Date:** The amendments come into force from April 1, 2026; however, banks may decide to implement the amendments in entirety from an earlier date. **Impact Analysis** **Stakeholder: Urban Co-operative Banks (UCBs)** * **Impact:** UCBs need to modify their financial statement presentation and disclosures to comply with the new guidelines regarding related party exposures. * **Action Required:** UCBs must integrate the new disclosure requirements into their financial reporting processes and systems. They need to collect and accurately present the specified data in the format prescribed in the document. They must also decide whether to implement these changes before the mandatory effective date.

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