What changed
RBI has amended paragraph 10(14)(vii) of the Financial Statements Directions to require banks to explicitly state in their annual report that deposit insurance premium was paid to DICGC within prescribed timelines. If payment was delayed, the bank must also disclose the arrears. This follows the DICGC's Risk Based Premium framework issued on February 6, 2026.
What it means for you
Banks now face a reputational and compliance risk if DICGC premiums are delayed, as non-compliance becomes publicly visible in annual reports. This aligns with the new risk-based premium structure, making timely payment a governance indicator. Lenders must tighten internal processes to avoid adverse disclosures.
What you must do
- Update annual report templates to include the new DICGC premium disclosure table with current and previous year columns.
- Ensure internal systems track DICGC premium payment dates and flag any delays before year-end.
- Train finance and compliance teams on the revised disclosure requirements effective April 1, 2026.
- Review DICGC premium payment processes to ensure adherence to prescribed timelines.
Who it affects
All commercial banks in India, Bank finance and accounts departments, Bank compliance and audit teams
What exactly must banks disclose in their annual reports?
Banks must disclose whether deposit insurance premium was paid to DICGC within prescribed timelines. If there are arrears in payment, that must also be disclosed.