Reserve Bank of India issued the Urban Co-operative Banks – Financial Statements: Presentation and Disclosures (Amendment) Directions, 2026 on 5 January 2026, amending the existing 2025 Directions. The amendments were issued following a review triggered by the Urban Co-operative Banks – Credit Risk Management Amendment Directions, 2026, and were notified under sections 35A read with section 56 of the Banking Regulation Act, 1949. The key change introduces a new disclosure requirement in Chapter III relating to “Exposures to Related Parties.” Urban Co-operative Banks are now required to disclose detailed information in their notes to accounts regarding loans sanctioned to related parties, outstanding balances, their proportion to total credit exposure, classification into Special Mention Accounts and Non-Performing Assets, and provisions held. Additionally, disclosures are mandated for contracts and arrangements awarded to or outstanding with related parties. These amendments will come into force from 1 April 2026, with an option for earlier implementation.
Reserve Bank of India
RBI/2025-26/185
DOR.CRE.REC.386/21-04-018/2025-26 | Dated: January 05, 2026
Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – 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 Cooperative Banks – Credit Risk Management) – Amendment Directions, 2026, and in exercise of the powers conferred by the sections 35A read with Section 56 of the Banking Regulation Act, 1949 and all other provisions / 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 modifies the Directions as under:
(1) In Chapter-III ‘Disclosure in Financial Statements – Notes to Accounts’, a new sub-sub paragraph (viii) shall be inserted under sub-paragraph 10(5) on ‘Exposures’, as given below:
10(5)(viii) Exposures to Related Parties
Details of exposures to related parties as defined in Reserve Bank of India (Urban Co-operative Banks – Credit Risk Management) Directions, 2025 shall be disclosed as per the following table:
(Amount in ₹ crore)
| Sl No. |
Particulars | Previous Year |
Current Year |
| A. Loans to Related Parties | |||
| 1 | Aggregate value of loans sanctioned to related parties during the year | ||
| 2 | Aggregate value of outstanding loans to related parties as on 31st March | ||
| 3 | Aggregate value of outstanding loans to related parties as a proportion of total credit exposure as on 31st March | ||
| 4 | Aggregate value of outstanding loans to related parties which are categorized as: | ||
| (i) Special Mention Accounts as on 31st March | |||
| (ii) Non-Performing Assets as on 31st March | |||
| 5 | Amount of provisions held in respect of loans to related parties as on 31st March | ||
| B. Contracts and Arrangements involving Related Parties | |||
| 6 | Aggregate value of contracts and arrangements awarded to related parties during the year | ||
| 7 | Aggregate value of outstanding contracts and arrangements involving related parties as on 31st March | ||
4. The above amendments shall come into force from April 1, 2026. Banks may however decide to implement the amendments in entirety from an earlier date.
Vaibhav Chaturvedi
(Chief General Manager)
