The Reserve Bank of India issued the Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026 on March 16, 2026. The amendment revises disclosure requirements relating to payment of deposit insurance premiums by Local Area Banks. The revision follows the implementation of the Risk Based Premium (RBP) Framework introduced on February 6, 2026 by the Deposit Insurance and Credit Guarantee Corporation. Exercising powers under Section 35A of the Banking Regulation Act, 1949, the RBI modified paragraph 10(12)(vi) of the Directions governing financial statement disclosures. Under the revised provision, Local Area Banks must disclose in their annual reports that the applicable deposit insurance premium has been paid to DICGC within the prescribed timelines. If payment is not made within the required timeframe, the delay or arrears must also be clearly disclosed. The amendment aims to enhance transparency, accountability, and regulatory compliance in financial reporting and will come into effect from April 1, 2026.
Reserve Bank of India
RBI/DOR/2025-26/246
DOR.ACC.REC.No.441/21.04.018/2025-26 | Dated: 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’).
2. 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.
3. 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.
4. The above amendments shall come into force from April 1,
(Sunil T S Nair)
Chief General Manager
