The Reserve Bank of India has amended its financial statement presentation and disclosure framework for urban co-operative banks to introduce a new Notes to Accounts disclosure on exposures to related parties, aligned to the related-party definition in the Reserve Bank of India (Urban Co-operative Banks – Credit Risk Management) Directions, 2025. The amendment inserts a new sub-paragraph under the chapter on disclosures in financial statements, requiring reporting (in INR crore, for both the previous year and current year) of aggregate loans sanctioned to related parties, outstanding related-party loans as at 31 March, related-party loans as a proportion of total credit exposure, related-party loans classified as Special Mention Accounts or Non-Performing Assets as at 31 March, and provisions held against such loans. It also adds disclosure of the aggregate value of contracts and arrangements awarded to related parties during the year and outstanding contracts and arrangements involving related parties as at 31 March. The changes take effect from 1 April 2026, with optional early adoption in full.
Reserve Bank of India 2026-01-06
Reserve Bank of India adds related-party exposure disclosure requirements for urban co-operative banks from 1 April 2026
The Reserve Bank of India has revised its financial statement presentation and disclosure framework for urban co-operative banks, mandating new Notes to Accounts disclosures on related-party exposures, effective 1 April 2026, with optional early adoption. The amendment requires detailed reporting on loans and contracts involving related parties, including their classification and provisions.