What changed
The amendment modifies paragraph 10(12)(vi) of the Payments Banks Directions, 2025, specifically the disclosure table for DICGC insurance premium. Banks must now disclose in their annual report whether the deposit insurance premium was paid within prescribed timelines, and if not, the arrears must also be disclosed.
What it means for you
Payments banks must now explicitly confirm timely payment of DICGC premiums in their annual reports, enhancing transparency on deposit insurance compliance. Any delays or arrears will be publicly visible, increasing accountability and potentially impacting depositor confidence.
What you must do
- Update annual report templates to include the new DICGC premium disclosure table with current and previous year columns.
- Ensure internal processes track DICGC premium payment dates and arrears for accurate reporting.
- Train finance and compliance teams on the new disclosure requirements effective April 1, 2026.
- Review existing payment timelines to avoid arrears and associated disclosure.
Who it affects
Payments banks, Compliance officers of payments banks, Finance and reporting teams of payments banks
What exactly must payments banks disclose under the new rule?
Banks must disclose in their annual report whether the deposit insurance premium was paid to DICGC within prescribed timelines. If there are arrears, those must also be disclosed.
When does this amendment take effect?
The amendment comes into force from April 1, 2026, so it applies to annual reports for financial years ending on or after that date.
Why did RBI issue this amendment?
The amendment follows the DICGC's issuance of the Risk Based Premium Framework on February 6, 2026, and aims to improve transparency around deposit insurance premium compliance.