RBI Amends Urban Co-operative Bank Financial Statement Directions

India RBI Notifications

Published March 16th, 2026

Detected March 24th, 2026

Summary

The Reserve Bank of India (RBI) has amended the financial statement presentation and disclosure directions for urban co-operative banks. These amendments, effective April 1, 2026, require specific disclosures regarding the payment of Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance premiums.

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What changed

The Reserve Bank of India (RBI) has issued the Third Amendment Directions to the Urban Co-operative Banks – Financial Statements: Presentation and Disclosures Directions, 2025. This amendment specifically modifies paragraph 10(11)(vi) concerning the payment of DICGC insurance premiums. Banks are now required to disclose in their annual reports whether the deposit insurance premium was paid to DICGC within the prescribed timelines, and if not, this non-compliance must also be disclosed.

These changes are effective from April 1, 2026, and are consequent to the implementation of the Risk Based Premium (RBP) Framework by DICGC. Urban co-operative banks must update their financial reporting and disclosure processes to comply with this new requirement, ensuring accurate reporting of DICGC premium payments in their upcoming annual reports.

What to do next

Update annual report templates to include disclosure on DICGC insurance premium payment timelines.
Ensure internal processes track and confirm timely payment of DICGC insurance premiums.
Disclose any arrears in DICGC premium payments as required by the amended directions.

Source document (simplified)

Notifications

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| Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Third Amendment Directions, 2026 | | | | | | | | | | | | | |
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| RBI/DOR/2025-26/248
DOR.ACC.REC.No.443/21.04.018/2025-26

March 16, 2026

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

Please refer to the Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 (hereinafter referred to as ‘the Directions’).

On a review, consequent to the issuance of the Implementation of Risk Based Premium (RBP) Framework dated February 6, 2026, by the Deposit Insurance and Credit Guarantee Corporation (DICGC), and in exercise of the powers conferred by the section 35A read with Section 56 of the Banking Regulation Act, 1949 and all other 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.
The Amendment Directions modify paragraph 10(11)(vi) as under:

10(11)(vi) Payment of DICGC Insurance Premium

\| ~~Sr. No.~~ \| ~~Particulars~~ \| ~~Current Year~~ \| ~~Previous Year~~ \|
\| ~~i)~~ \| ~~Payment of DICGC Insurance Premium~~ \| \| \|
\| ~~ii)~~ \| ~~Arrears in payment of DICGC premium~~ \| \| \|
A bank shall disclose in the annual report that ‘deposit insurance premium as applicable was paid to DICGC within the prescribed timelines’. In case the bank has not paid as per the required timelines, the same shall also be disclosed.

The above amendments shall come into force from April 1, 2026.

March 16, 2026

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

Please refer to the Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 (hereinafter referred to as ‘the Directions’).

On a review, consequent to the issuance of the Implementation of Risk Based Premium (RBP) Framework dated February 6, 2026, by the Deposit Insurance and Credit Guarantee Corporation (DICGC), and in exercise of the powers conferred by the section 35A read with Section 56 of the Banking Regulation Act, 1949 and all other 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.
The Amendment Directions modify paragraph 10(11)(vi) as under:

10(11)(vi) Payment of DICGC Insurance Premium

| ~~Sr. No.~~ | ~~Particulars~~ | ~~Current Year~~ | ~~Previous Year~~ |
| ~~i)~~ | ~~Payment of DICGC Insurance Premium~~ | | |
| ~~ii)~~ | ~~Arrears in payment of DICGC premium~~ | | |
A bank shall disclose in the annual report that ‘deposit insurance premium as applicable was paid to DICGC within the prescribed timelines’. In case the bank has not paid as per the required timelines, the same shall also be disclosed.

The above amendments shall come into force from April 1, 2026.

March 16, 2026

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

Please refer to the Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 (hereinafter referred to as ‘the Directions’).

On a review, consequent to the issuance of the Implementation of Risk Based Premium (RBP) Framework dated February 6, 2026, by the Deposit Insurance and Credit Guarantee Corporation (DICGC), and in exercise of the powers conferred by the section 35A read with Section 56 of the Banking Regulation Act, 1949 and all other 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.
The Amendment Directions modify paragraph 10(11)(vi) as under:

10(11)(vi) Payment of DICGC Insurance Premium