The Reserve Bank of India issued the Urban Co-operative Banks (Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026 to enhance transparency and regulatory oversight. The amendment introduces mandatory disclosures relating to unsecured advances and lending to nominal members in the notes to accounts of financial statements. Urban Co-operative Banks (UCBs) must now report detailed data including sanctioned and outstanding unsecured advances, their proportion to total loans, classification into Special Mention Accounts and Non-Performing Assets, and provisions held. Additionally, disclosures on loans to nominal members, including their aggregate value and proportion relative to regular members, are required. These changes align with updated concentration risk management norms and aim to improve monitoring of risk exposure. Effective from October 1, 2026, the framework ensures greater accountability, better risk assessment by stakeholders, and enhanced financial discipline in UCB operations.
Reserve Bank of India
RBI/2026-27/41
DOR.CRE.REC.31/21-04-018/2026-27 | Dated: April 29, 2026
Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Second 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 – 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 enabling provisions / laws 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:
3(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:
| (Amount in ₹ crore) | |||
| Sr. No. | Particulars | Previous Year | Current 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 (applicable only for UCBs complying with the Eligibility Criteria for Business Authorization as specified in paragraph 9 of the Reserve Bank of India (Urban Co-operative Banks – Branch Authorisation) Directions, 2025) | ||
| 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 | ||
| 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)
