**Executive Summary**
This document RBI/2025-26/185, dated January 05, 2026, issues amendment directions regarding financial statements' presentation and disclosures for Urban Co-operative Banks. The Amendment Directions modify existing directions issued in 2025. The effective date for these amendments is April 1, 2026, though banks may choose to implement them earlier.
**Key Points / Main Content**
* **Amendment to Disclosure in Financial Statements:** A new sub-sub paragraph (viii) is added under sub-paragraph 10(5) on 'Exposures' in Chapter-III 'Disclosure in Financial Statements – Notes to Accounts'.
* **Details 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 according to the provided table.
* The table requires disclosure of previous and current year amounts (in ₹ crore) for the following:
* 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 and 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 are effective from April 1, 2026, but banks have the option to implement them earlier.
**Impact Analysis**
**Stakeholder: Urban Co-operative Banks**
* **Impact**: Banks are required to modify their financial statement disclosures to include the new 'Exposures to Related Parties' details, as outlined in the provided table.
* **Action Required**: Update financial statement reporting processes to comply with the new disclosure requirements by April 1, 2026, or earlier if desired.
Key Entities Referenced
Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: The Directions are being amended by this document.
Banking Regulation Act, 1949: The Act provides the Reserve Bank of India with the powers to issue the directions.
Reserve Bank of India (Urban Co-operative Banks – Credit Risk Management) Directions, 2025: Directions that define exposures to related parties, as referenced in the disclosure requirements.
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