The Reserve Bank of India has issued a second amendment to its 2025 Directions on Local Area Banks’ financial statement presentation and disclosures, introducing a specific annual report disclosure on payment of Deposit Insurance and Credit Guarantee Corporation (DICGC) deposit insurance premium. The amendment revises paragraph 10(12)(vi) to require a disclosure that the applicable deposit insurance premium was paid to DICGC within prescribed timelines, and to disclose where payment was not made within the required timelines. The disclosure is presented for the current year and the previous year, including premium arrears, and follows the DICGC’s issuance of its Implementation of Risk Based Premium (RBP) Framework dated February 6, 2026. The amendments come into force from April 1, 2026.
Reserve Bank of India 2026-03-16
Reserve Bank of India requires Local Area Banks to disclose timely payment of DICGC deposit insurance premiums
The Reserve Bank of India has amended its 2025 Directions on Local Area Banks’ financial statement presentation, mandating annual report disclosures on Deposit Insurance and Credit Guarantee Corporation (DICGC) premium payments. Banks must disclose timely payments and any arrears for the current and previous year, aligning with the DICGC's Risk Based Premium Framework. The amendments take effect on April 1, 2026.