**Executive Summary**
This document outlines the Second Amendment Directions, 2026 to the Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025. It introduces new disclosure requirements in financial statements related to unsecured advances and lending to nominal members. The amendments come into force on October 1, 2026.
**Key Points / Main Content**
* **Amendment to Disclosure Requirements:**
* A new sub-paragraph (ix) is inserted under sub-paragraph 10(5) on Exposures in Chapter-III of the Directions, concerning disclosure in financial statements.
* This new sub-paragraph 10(5)(ix) specifically addresses "Unsecured advances and lending to nominal members."
* **Unsecured Advances Disclosure:**
* Details of aggregate unsecured advances sanctioned during the year must be disclosed.
* The aggregate value of unsecured advances outstanding as on 31st March must be disclosed.
* The value of unsecured advances with ticket sizes up to ₹50,000 (eligible as priority sector loans) from the total outstanding amount must be disclosed.
* The aggregate value of unsecured advances outstanding (excluding those in the ₹50,000 category) as a percentage of total loans and advances must be disclosed.
* A breakdown of unsecured advances categorized as Special Mention Accounts and Non-Performing Assets as on 31st March must be provided.
* The amount of provisions held in respect of unsecured advances must be disclosed.
* **Lending to Nominal Members Disclosure:**
* The aggregate value of loans to nominal members sanctioned during the year must be disclosed.
* The aggregate value of loans to nominal members outstanding as on 31st March must be disclosed.
* Total number of nominal members as on 31st March must be disclosed.
* Total number of nominal members as a percentage of regular members as on 31st March must be disclosed.
**Impact Analysis**
**Urban Co-operative Banks**
* **Impact:** Banks must now disclose additional information in their financial statements regarding unsecured advances and lending to nominal members.
* **Action Required:** Banks need to modify their reporting processes to capture and disclose the required data in the format specified in the document by October 1, 2026.
Key Entities Referenced
Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026: The primary subject of the document, outlining amendments to disclosure requirements for urban co-operative banks.
Banking Regulation Act, 1949: A key law providing the legal framework for the Reserve Bank of India's regulatory powers over banks.
Reserve Bank of India (Urban Co-operative Banks – Concentration Risk Management) Directions, 2025: Referenced direction that is related to the disclosure of unsecured advances.
Reserve Bank of India: The central bank of India, issuing the amendment directions.
Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025: Original directions being amended by the new direction.
भारतीय �रज़वर् बैंक
RESERVE BANK OF INDIA
RBI/2025-26/<>
DOR.CRE.REC.<>/21-04-018/2025-26 MM DD YYYY
Reserve Bank of India (Urban Co-operative Banks – Financial
Statements: Presentation and Disclosures) – Second Amendment
Directions, 2026 – Draft for comments
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 – Concentration Risk Management) – Amendment Directions, 2026,
and in exercise of the powers conferred by the sections 21 and 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 (ix) shall be inserted under sub-paragraph 10(5) on Exposures, as
given below:
10(5)(ix) Unsecured advances and lending to nominal members
Details of aggregate unsecured advances and lending to nominal members as
defined in Reserve Bank of India (Urban Co-operative Banks – Concentration
Risk Management) Directions, 2025 shall be disclosed as per the following
table:Reserve Bank of India (Urban Co-operative Banks – Financial Statements:
Presentation and Disclosures) – Second Amendment Directions, 2026– Draft for comments
(Amount in ₹ crore)
Sr. Particulars Previous Current
No.
Year Year
A. Unsecured advances
1 Aggregate value of unsecured advances
sanctioned during the year
2 Aggregate value of unsecured advances
outstanding as on 31st March
3 Out of Sr. No. 2 above, aggregate unsecured
advances of ticket sizes upto ₹50,000, which are
eligible as priority sector loans
4 Aggregate value of unsecured advances
outstanding (excluding Sr. No. 3 above) as a
percentage of total loans and advances as on 31st
March
5 Aggregate value of unsecured advances which are
categorized as:
(i) Special Mention Accounts as on 31st March
(ii) Non-Performing Assets as on 31st March
6 Amount of provisions held in respect of unsecured
advances as on 31st March
B. Lending to nominal members
7 Aggregate value of loans to nominal members
sanctioned during the year
8 Aggregate value of loans to nominal members
outstanding as on 31st March
2Reserve Bank of India (Urban Co-operative Banks – Financial Statements:
Presentation and Disclosures) – Second Amendment Directions, 2026– Draft for comments
9 Total number of nominal members as on 31st
March
10 Total number of nominal members as a percentage
of regular members as on 31st March
4. The above amendments shall come into force from October 1, 2026.
Vaibhav Chaturvedi
(Chief General Manager)
3