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Local Area Banks Must Disclose DICGC Premium Payments in Annual Report

Current · Source: Reserve Bank of India · RBI/DOR/2025-26/246 · issued 16 Mar 2026 · ~1 min read
Quick answerFrom April 1 2026, every Local Area Bank must state in its annual report whether the deposit insurance premium to DICGC was paid on time, and if any payment was delayed, the arrears must also be disclosed.
The rule, in the simplest words
How it plays out — a real example

Riya, a compliance officer at a Local Area Bank in Jaipur, checks the DICGC premium payment date each year. On April 2 2026 she confirms the payment was made on time and writes a note in the annual report. If it had been late, she would calculate the arrears and add that to the report, ensuring the bank meets RBI’s new requirement.

What changed

The RBI has amended the presentation guidelines for Local Area Banks to add a specific disclosure requirement on DICGC insurance premium payments. Banks now have to confirm timely premium payment in the annual report, and explicitly note any outstanding amounts if payment was late. The change takes effect from 1 April 2026.

What it means for you

Banks will need to track premium payment dates more closely and ensure the information is reflected in the annual report. Non‑compliance will be visible to regulators and stakeholders, potentially affecting the bank’s credibility and supervisory assessment. Auditors will have an additional item to verify during the audit of financial statements.

What you must do

Who it affects

Local Area Banks, Bank compliance officers, External auditors

❓ Common questions

What exact wording should be used for the premium disclosure?

State that the applicable deposit insurance premium was paid to DICGC within the prescribed timelines; if not, mention the amount of premium that remains unpaid.

Does this apply to previous financial years?

The requirement is mandatory for financial statements covering the period from 1 April 2026 onward. Earlier years are not subject to this new disclosure.

What are the consequences of not disclosing arrears?

Failure to disclose will be treated as a regulatory breach and may attract supervisory action or penalties under the Banking Regulation Act.

📜 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 ( 244 kb ) Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026 RBI/DOR/2025-26/246 DOR.ACC.REC.No.441/21.04.018/2025-26 March 16, 2026 Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026 Please refer to the Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 (hereinafter referred to as ‘the Directions’). 2. On a review, consequent to the issuance of the Implementation of Risk Based Premium (RBP) Framework dated February 6, 2026 , by the Deposit Insurance and Credit Guarantee Corporation (DICGC), and in exercise of the powers conferred by the section 35A of the Banking Regulation Act, 1949 and all other laws enabling the Reserve Bank of India (hereinafter called the Reserve Bank) 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 modify paragraph 10(12)(vi) as under: 10(12)(vi) Payment of DICGC Insurance Premium Sr. No. Particulars Current Year Previous Year i) Payment of DICGC Insurance Premium ii) Arrears in payment of DICGC premium A bank shall disclose in the annual report that ‘deposit insurance premium as applicable was paid to DICGC within the prescribed timelines’. In case the bank has not paid as per the required timelines, the same shall also be disclosed. 4. The above amendments shall come into force from April 1, 2026. (Sunil T S Nair) 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. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/DOR/2025-26/246 · issued 16 Mar 2026. The plain-English explanation above is BankPulse’s own independent summary.
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Who does what — compliance checklist
💻 IT / Systems
  • Inform the audit team about the new disclosure requirement so they can test compliance.
📜 Compliance
  • Update the annual report template to include a DICGC premium payment disclosure section.
  • Implement a process to verify that the premium is paid within the prescribed deadline each year.
  • If payment is delayed, calculate the arrears and ensure they are disclosed in the report.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (Local Area Banks, Bank compliance officers, External auditors), your first concrete step on “Local Area Banks Must Disclose DICGC Premium Payments in Annual Report” is: “Update the annual report template to include a DICGC premium payment disclosure section.” (RBI issued this 16 Mar 2026).

  1. Circular: RBI/DOR/2025-26/246 -- Local Area Banks Must Disclose DICGC Premium Payments in Annual Report
  2. Issued: 16 Mar 2026
  3. Action required: Update the annual report template to include a DICGC premium payment disclosure section.
  4. Action required: Implement a process to verify that the premium is paid within the prescribed deadline each year.
  5. Action required: If payment is delayed, calculate the arrears and ensure they are disclosed in the report.
  6. Action required: Inform the audit team about the new disclosure requirement so they can test compliance.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. 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.

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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=13338&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.
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