RBI Local Area Banks Financial Statements Amendment Directions
Summary
The Reserve Bank of India has issued the Local Area Banks Financial Statements Amendment Directions, 2026. These amendments modify the disclosure requirements for Local Area Banks regarding the payment of Deposit Insurance and Credit Guarantee Corporation (DICGC) insurance premiums.
What changed
The Reserve Bank of India (RBI) has issued the Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026, amending the existing Directions from 2025. The key change modifies paragraph 10(12)(vi) concerning the disclosure of DICGC insurance premium payments. Banks must now disclose in their annual reports whether the applicable deposit insurance premium was paid to DICGC within the prescribed timelines, and also disclose any instances of non-payment or delayed payment.
These amendments are effective from April 1, 2026, and are a consequence of the Deposit Insurance and Credit Guarantee Corporation's (DICGC) implementation of the Risk Based Premium (RBP) Framework. Local Area Banks must update their financial reporting and annual disclosure processes to comply with the new requirements by the effective date. Failure to comply could lead to regulatory scrutiny and potential penalties under the Banking Regulation Act, 1949.
What to do next
- Update annual report disclosure templates to include information on DICGC premium payment timeliness.
- Ensure all DICGC insurance premiums are paid within the prescribed timelines.
- Establish internal processes to track and report any delays in DICGC premium payments.
Penalties
Non-compliance may lead to regulatory scrutiny and potential penalties under Section 35A of the Banking Regulation Act, 1949.
Source document (simplified)
Notifications
| () | | | | | | | | | | | | | |
| Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026 | | | | | | | | | | | | | |
| | RBI/DOR/2025-26/246
DOR.ACC.REC.No.441/21.04.018/2025-26
March 16, 2026
Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026
Please refer to the Reserve Bank of India (Local Area 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 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(12)(vi) as under:
10(12)(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.
(Sunil T S Nair)
Chief General Manager | ~~Sr. No.~~ | ~~Particulars~~ | ~~Current Year~~ | ~~Previous Year~~ | ~~i)~~ | ~~Payment of DICGC Insurance Premium~~ | | | ~~ii)~~ | ~~Arrears in payment of DICGC premium~~ | | |
| ~~Sr. No.~~ | ~~Particulars~~ | ~~Current Year~~ | ~~Previous Year~~ | | | | | | | | | |
| ~~i)~~ | ~~Payment of DICGC Insurance Premium~~ | | | | | | | | | | | |
| ~~ii)~~ | ~~Arrears in payment of DICGC premium~~ | | | | | | | | | | | | | RBI/DOR/2025-26/246
DOR.ACC.REC.No.441/21.04.018/2025-26
March 16, 2026
Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026
Please refer to the Reserve Bank of India (Local Area 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 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(12)(vi) as under:
10(12)(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.
(Sunil T S Nair)
Chief General Manager | ~~Sr. No.~~ | ~~Particulars~~ | ~~Current Year~~ | ~~Previous Year~~ | ~~i)~~ | ~~Payment of DICGC Insurance Premium~~ | | | ~~ii)~~ | ~~Arrears in payment of DICGC premium~~ | | |
| RBI/DOR/2025-26/246
DOR.ACC.REC.No.441/21.04.018/2025-26
March 16, 2026
Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026
Please refer to the Reserve Bank of India (Local Area 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 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(12)(vi) as under:
10(12)(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.
(Sunil T S Nair)
Chief General Manager | ~~Sr. No.~~ | ~~Particulars~~ | ~~Current Year~~ | ~~Previous Year~~ | ~~i)~~ | ~~Payment of DICGC Insurance Premium~~ | | | ~~ii)~~ | ~~Arrears in payment of DICGC premium~~ | | | |
| ~~Sr. No.~~ | ~~Particulars~~ | ~~Current Year~~ | ~~Previous Year~~ | | | | | | | | | | |
| ~~i)~~ | ~~Payment of DICGC Insurance Premium~~ | | | | | | | | | | | | |
| ~~ii)~~ | ~~Arrears in payment of DICGC premium~~ | | | | | | | | | | | | |
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
Archives
Named provisions
Related changes
Source
Classification
Who this affects
Taxonomy
Browse Categories
Get Banking & Finance alerts
Weekly digest. AI-summarized, no noise.
Free. Unsubscribe anytime.
Get alerts for this source
We'll email you when India RBI Notifications publishes new changes.