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

**Executive Summary** This document, issued by the Reserve Bank of India on January 05, 2026, provides Amendment Directions related to the financial statements, presentation, and disclosures of Urban Co-operative Banks. These amendments, effective April 1, 2026, concern the disclosure of exposures to related parties and come as a consequence of the issuance of the Reserve Bank of India (Urban Co-operative Banks – Credit Risk Management) – Amendment Directions, 2026. Banks may implement the changes earlier, if desired. **Key Points / Main Content** * **Amendment to Disclosure Requirements:** * 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'. * The new paragraph mandates the disclosure of details of exposures to related parties, as defined in the Reserve Bank of India (Urban Co-operative Banks – Credit Risk Management) Directions, 2025. * **Required Disclosures:** * Details of loans to related parties must be disclosed according to a specified table. * The table requires reporting of the aggregate value of loans sanctioned during the year. * The table requires reporting of the aggregate value of outstanding loans to related parties as on 31st March. * The table requires reporting of the aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on 31st March. * The table requires reporting of the aggregate value of outstanding loans to related parties which are categorized as: Special Mention Accounts as on 31st March, Non-Performing Assets as on 31st March. * The table requires reporting of the amount of provisions held in respect of loans to related parties as on 31st March. * Details of contracts and arrangements involving related parties must be disclosed according to a specified table. * The table requires reporting of the aggregate value of contracts and arrangements awarded to related parties during the year. * The table requires reporting of the aggregate value of outstanding contracts and arrangements involving related parties as on 31st March. * **Effective Date:** * The amendments will come into force from April 1, 2026. * Banks have the option to implement the amendments earlier. **Impact Analysis** **Urban Co-operative Banks** * **Impact:** Must adhere to the new disclosure requirements for financial statements. * **Action Required:** Update financial reporting processes to incorporate the new disclosure requirements related to exposures to related parties and implement the changes by April 1, 2026, or earlier if desired. **Reserve Bank of India** * **Impact:** Will receive more detailed and standardized information on exposures to related parties from Urban Co-operative Banks. * **Action Required:** Supervise and enforce compliance with the new disclosure requirements. **Stakeholders of Urban Co-operative Banks (e.g., depositors, investors)** * **Impact:** Will have access to more transparent information regarding the banks' dealings with related parties. * **Action Required:** Review the updated financial statements to understand the extent of the bank's exposures to related parties.

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