**Executive Summary**
This document, issued by the Reserve Bank of India on January 05, 2026, concerns Amendment Directions to the "Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025." The amendment requires Urban Co-operative Banks to disclose details of exposures to related parties in their financial statements, effective April 1, 2026, although banks may choose to implement it earlier.
**Key Points / Main Content**
* **Amendment to Disclosure in Financial Statements:**
* Chapter-III of the Directions is modified.
* A new sub-sub paragraph (viii) is added under sub-paragraph 10(5) on 'Exposures'.
* **Disclosure of 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," must be disclosed.
* The following details must be disclosed:
* 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 and Non-Performing Assets as on 31st March.
* Amount of provisions held in respect of loans to related parties as on 31st March.
* 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.
* Banks can implement the amendments in their entirety from an earlier date.
**Impact Analysis**
**Stakeholder: Urban Co-operative Banks**
* **Impact:** Banks need to modify their financial statement presentation to include the disclosure of exposures to related parties.
* **Action Required:** Banks must update their financial reporting systems and processes to capture and report the required information in the specified format. Banks must implement these changes by April 1, 2026 or can choose to implement them at an earlier date.
Key Entities Referenced
Reserve Bank of India: The central bank of India, issuing these directions.
Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The original directions being amended by this document.
Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Amendment Directions, 2026: This document itself, providing amendments to the 2025 directions.
Banking Regulation Act, 1949: The act under which the powers are conferred to make the amendment directions.
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