In a move to strengthen disclosure requirements, the Reserve Bank of India (RBI) has released the draft Urban Co-operative Banks-Financial Statements: Presentation and Disclosures (Second Amendment) Directions, 2026.
Under the proposed framework, Urban Co-operative Banks (UCBs) will be required to make detailed disclosures on unsecured advances and lending to nominal members in their notes to accounts. These disclosures will cover the aggregate value of unsecured loans sanctioned during the year and outstanding as on March 31, their proportion to total loans and advances, and the classification of such exposures, including Special Mention Accounts (SMA) and Non-Performing Assets (NPA), along with the provisions held against unsecured advances.
The draft directions also mandate specific disclosures relating to lending to nominal members. These include the aggregate value of loans sanctioned and outstanding, the total number of nominal members, and their percentage in relation to regular members as on March 31.
These disclosure requirements have been proposed consequent to the issuance of the draft Urban Co-operative Banks-Concentration Risk Management (Amendment) Directions, 2026, and are intended to be reflected in the financial statements of UCBs.
The proposed amendments are scheduled to come into force from October 1, 2026.