The Reserve Bank of India (RBI) issued the Small Finance Banks – Financial Statements: Presentation and Disclosures (Third Amendment) Directions, 2026 on March 16, 2026. The amendment updates the disclosure framework under the 2025 Directions following the Risk Based Premium (RBP) Framework introduced by the Deposit Insurance and Credit Guarantee Corporation (DICGC) on February 6, 2026. Exercising powers under Section 35A of the Banking Regulation Act, 1949, RBI modified paragraph 10(14)(vii) concerning payment of DICGC insurance premium by small finance banks. Under the revised rule, small finance banks must disclose in their financial statements the amount of deposit insurance premium paid to DICGC for both the current and previous year. Banks are also required to state in their annual report that the deposit insurance premium was paid within the prescribed timelines. If the premium was not paid within the stipulated timeframe, the delay or arrears must also be disclosed. The amendment seeks to improve transparency and strengthen regulatory oversight of deposit insurance compliance. These directions will take effect from April 1, 2026.
Reserve Bank of India
RBI/DOR/2025-26/244
DOR.ACC.REC.No.439/21.04.018/2025-26 | Dated: March 16, 2026
Reserve Bank of India (Small Finance Banks – Financial Statements: Presentation and Disclosures) – Third Amendment Directions, 2026
Please refer to the Reserve Bank of India (Small Finance 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(14)(vii) as under:
10(14)(vii) Payment of DICGC Insurance 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, 2026.
(Sunil T S Nair)
Chief General Manager
