HomeCirculars › RBI/2026-27/41

RBI Amends Directions for Urban Co-operative Banks

Current · Source: Reserve Bank of India · RBI/2026-27/41 · issued 29 Apr 2026 · ~1 min read
Quick answerRBI issues second amendment directions for urban co-operative banks to enhance financial statement disclosures.
The rule, in the simplest words
How it plays out — a real example

As a co-operative bank branch officer in Indore, Rohan must review and update the financial statement disclosures for his bank to include details of unsecured advances and lending to nominal members. He ensures that the disclosures are accurate and compliant with the amended Directions, providing transparency and insights into the bank's lending practices and risk management.

What changed

The Reserve Bank of India (RBI) has amended the Directions for Urban Co-operative Banks to enhance financial statement disclosures. The amendments include the addition of a new sub-sub paragraph (ix) under Chapter-III Disclosure in Financial Statements – Notes to Accounts, which requires details of aggregate unsecured advances and lending to nominal members.

What it means for you

These amendments will enhance transparency and disclosure requirements for urban co-operative banks, providing insights into their lending practices and risk management.

What you must do

Who it affects

Urban Co-operative Banks

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What are the key changes introduced by the RBI?

The RBI has introduced a new sub-sub paragraph (ix) under Chapter-III Disclosure in Financial Statements – Notes to Accounts, which requires details of aggregate unsecured advances and lending to nominal members.

When do the amendments come into effect?

The amendments will come into effect from October 1, 2026.

What is the purpose of these amendments?

The amendments aim to enhance transparency and disclosure requirements for urban co-operative banks, enabling lenders to make informed decisions.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Amends RBI Directions for Urban Co-operative Banks: Concentration Risk Management
📜 Read the original circular — full text as issued by RBI
Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 241 kb ) Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Second Amendment Directions, 2026 RBI/2026-27/41 DOR.CRE.REC.31/21-04-018/2026-27 April 29, 2026 Reserve Bank of India (Urban Co-operative Banks – Financial Statements: Presentation and Disclosures) – Second 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 Co-operative Banks – Concentration Risk Management) – Amendment Directions, 2026, and in exercise of the powers conferred by the sections 21 and 35A read with Section 56 of the Banking Regulation Act, 1949 and all other enabling provisions / laws 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: 3(1) In ‘Chapter-III Disclosure in Financial Statements – Notes to Accounts’, a new sub- sub paragraph (ix) shall be inserted under sub-paragraph 10(5) on Exposures, as given below: 10(5)(ix) Unsecured advances and lending to nominal members Details of aggregate unsecured advances and lending to nominal members as defined in Reserve Bank of India (Urban Co-operative Banks – Concentration Risk Management) Directions, 2025 shall be disclosed as per the following table: (Amount in ₹ crore) Sr. No. Particulars Previous Year Current Year A. Unsecured advances 1 Aggregate value of unsecured advances sanctioned during the year 2 Aggregate value of unsecured advances outstanding as on 31 st March 3 Out of Sr. No. 2 above, aggregate unsecured advances of ticket sizes upto ₹50,000, which are eligible as priority sector loans (applicable only for UCBs complying with the Eligibility Criteria for Business Authorization as specified in paragraph 9 of the Reserve Bank of India (Urban Co-operative Banks - Branch Authorisation) Directions, 2025 ) 4 Aggregate value of unsecured advances outstanding (excluding Sr. No. 3 above) as a percentage of total loans and advances as on 31 st March 5 Aggregate value of unsecured advances which are categorized as: (i) Special Mention Accounts as on 31 st March (ii) Non-Performing Assets as on 31 st March 6 Amount of provisions held in respect of unsecured advances as on 31 st March B. Lending to nominal members 7 Aggregate value of loans to nominal members sanctioned during the year 8 Aggregate value of loans to nominal members outstanding as on 31 st March 9 Total number of nominal members as on 31 st March 10 Total number of nominal members as a percentage of regular members as on 31 st March 4. The above amendments shall come into force from October 1, 2026 . Vaibhav Chaturvedi (Chief General Manager) 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. All Rights Reserved. Sitemap | Disclaimer Website owned and managed by Reserve Bank of India. Contact us on helpdoc[at]rbi[dot]org[dot]in Website last updated date: Jul 27, 2026 Supports: Google Chrome 147+ | Firefox 150+ | Microsoft Edge Version 147+ | Safari 17+ Accessibility Statement | Screen Reader and Accessibility Help
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2026-27/41 · issued 29 Apr 2026. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Topics: Co-operative Banks
Key dataSee the live numbers behind this topic: RBI Penalty Tracker, NPA / Asset-Quality Tracker — updated from official RBI data.
Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. KYC / AML · Gross NPA (GNPA) · Deposit insurance (DICGC) · Scheduled Commercial Bank (SCB)
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Urban Co-operative Banks), your first concrete step on “RBI Amends Directions for Urban Co-operative Banks” is: “Review and update financial statement disclosures to include details of unsecured advances and lending to nominal members.” (RBI issued this 29 Apr 2026).

  1. Circular: RBI/2026-27/41 -- RBI Amends Directions for Urban Co-operative Banks
  2. Issued: 29 Apr 2026
  3. Action required: Review and update financial statement disclosures to include details of unsecured advances and lending to nominal members.
  4. Action required: Ensure compliance with the amended Directions from October 1, 2026.
  5. Owner: ____________ Target date: ____________
  6. Board/committee approval needed? Y / N
  7. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
BankPulse Compliance Evidence Pack — generated 02 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=13405&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗