**Executive Summary**
This document, issued by the Reserve Bank of India on January 05, 2026, provides Amendment Directions related to financial statement presentation and disclosures for Urban Co-operative Banks. These directions modify previous guidelines issued in 2025 concerning disclosures in financial statements, specifically regarding exposures to related parties, and come into force from April 1, 2026, though earlier implementation is permitted.
**Key Points / Main Content**
* **Amendment Context:**
* These amendments follow the issuance of the RBI's Credit Risk Management Amendment Directions, 2026, for Urban Co-operative Banks.
* **Amendment to Disclosure Requirements:**
* A new sub-paragraph (viii) is inserted under paragraph 10(5) of Chapter-III, “Disclosure in Financial Statements – Notes to Accounts,” regarding "Exposures to Related Parties."
* Details of exposures to related parties, as defined in the RBI's Credit Risk Management Directions, 2025, must be disclosed.
* **Disclosure Table Requirements:**
* Specific details to be disclosed in a table format, including:
* Aggregate value of loans sanctioned to related parties during the year.
* Aggregate value of outstanding loans to related parties as on March 31st.
* Aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on March 31st.
* Aggregate value of outstanding loans to related parties categorized as Special Mention Accounts and Non-Performing Assets as on March 31st.
* Amount of provisions held in respect of loans to related parties as on March 31st.
* 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 March 31st.
* **Effective Date:**
* The amendments come into force on April 1, 2026.
* Banks have the option to implement these amendments earlier.
**Impact Analysis**
**Stakeholder: Urban Co-operative Banks**
* **Impact:** The Amendment Directions alter the financial reporting obligations for Urban Co-operative Banks by adding more transparency to their relationships with related parties.
* **Action Required:** Banks must update their financial statement presentation to include the required disclosures on exposures to related parties as outlined in the document, adhering to the effective date of April 1, 2026, or an earlier adopted date.
Key Entities Referenced
Reserve Bank of India: India's central bank and regulatory body responsible for the financial stability and monetary policy.
Banking Regulation Act, 1949: An act to regulate banking companies in India.
Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: Directions issued by RBI pertaining to the presentation and disclosure of financial statements by Urban Co-operative Banks.
Reserve Bank of India (Urban Co-operative Banks – Credit Risk Management) – Amendment Directions, 2026: Amendment directions by RBI on credit risk management for Urban Co-operative Banks.
भारतीय ररज़र्व बैंक
RESERVE BANK OF INDIA
RBI/2025-26/185
DOR.CRE.REC.386/21-04-018/2025-26 January 05, 2026
Reserve Bank of India (Urban Co-operative Banks – Financial
Statements: Presentation and Disclosures) – Amendment Directions,
2026
Please refer to Reserve Bank of India (Urban Co-operative Banks - Financial
Statements: Presentation and Disclosures) Directions, 2025 (hereinafter referred to as
‘the Directions’).
2. On a review, consequent to the issuance of the Reserve Bank of India (Urban Co-
operative Banks – Credit Risk Management) – Amendment Directions, 2026, and in
exercise of the powers conferred by the sections 35A read with Section 56 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, the Reserve Bank
being satisfied that it is necessary and expedient in the public interest so to do, hereby
issues the Amendment Directions hereinafter specified.
3. The Amendment Directions modifies the Directions as under:
(1) In Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’, a new sub-
sub paragraph (viii) shall be inserted under sub-paragraph 10(5) on ‘Exposures’, as
given below:
10(5)(viii) Exposures to Related Parties
Details of exposures to related parties as defined in Reserve Bank of India
(Urban Co-operative Banks – Credit Risk Management) Directions, 2025 shall
be disclosed as per the following table:
(Amount in ₹ crore)
Sl Particulars Previous Current
No.
Year Year
A. Loans to Related PartiesReserve Bank of India (Urban Co-operative Banks – Credit Risk Management) – Amendment Directions, 2025
1 Aggregate value of loans sanctioned to related
parties during the year
2 Aggregate value of outstanding loans to related
parties as on 31st March
3 Aggregate value of outstanding loans to related
parties as a proportion of total credit exposure as
on 31st March
4 Aggregate value of outstanding loans to related
parties which are categorized as:
(i) Special Mention Accounts as on 31st March
(ii) Non-Performing Assets as on 31st March
5 Amount of provisions held in respect of loans to
related parties as on 31st March
B. Contracts and Arrangements involving Related Parties
6 Aggregate value of contracts and arrangements
awarded to related parties during the year
7 Aggregate value of outstanding contracts and
arrangements involving related parties as on 31st
March
4. The above amendments shall come into force from April 1, 2026. Banks may
however decide to implement the amendments in entirety from an earlier date.
Vaibhav Chaturvedi
(Chief General Manager)
2