The Reserve Bank of India has amended its financial statement presentation and disclosure directions for urban co-operative banks to require new notes-to-accounts disclosures on unsecured advances and lending to nominal members. The change follows the issuance of the 2026 amendment to the Urban Co-operative Banks Concentration Risk Management Directions. Urban co-operative banks will have to disclose the aggregate value of unsecured advances sanctioned during the year and outstanding as of 31 March, including a separate line for unsecured advances up to INR 50,000 that qualify as priority sector loans for banks meeting the eligibility criteria for business authorization. The new table also requires disclosure of unsecured advances outstanding, excluding that priority sector segment, as a percentage of total loans and advances, the portion classified as Special Mention Accounts and Non-Performing Assets, and related provisions. For lending to nominal members, banks must disclose loans sanctioned during the year, loans outstanding as of 31 March, the total number of nominal members, and that number as a percentage of regular members. The amendment takes effect from October 1, 2026.
Reserve Bank of India 2026-04-29
Reserve Bank of India requires urban co-operative banks to add disclosures on unsecured advances and lending to nominal members
The Reserve Bank of India has amended its financial statement presentation and disclosure directions for urban co-operative banks to introduce new notes-to-accounts disclosures on unsecured advances and lending to nominal members. Banks must now report detailed breakdowns of unsecured advances, including priority sector loans up to INR 50,000, related asset quality and provisions, as well as quantitative information on loans to nominal members and their share relative to regular members.