Reserve Bank of India (Rural Co-operative Banks – Financial Statements: Presentation and Disclosures) Directions, 2025 (Updated as on April 1, 2026)
UR
- Applies toRural co-operative banks
- StatusIn force
- ImportanceMUST READ
- IssuedNov 28, 2025
- Last amendedMar 16, 2026 · 2 incorporated
- Length33 points in 5 sections · 3 min read
The four dates on this rule
- PublishedNov 28, 2025The day RBI put this document out.
- Starts to applyNot statedNot stated separately in this document. Read the rule itself before you assume a start date.
- Time to get readyNot statedCannot be worked out until the day it starts to apply is known.
- Last date to actNot statedNo date to act by was found in this document. Other dates may sit inside single paragraphs.
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What it says
Chapter I. Preliminary
1. Accounts rules for RCBs
This paper sets how rural co-operative banks must show their accounts.
2. Start date
These Directions came into effect on the day RBI issued them.
3. Who is covered
These Directions apply to every rural co-operative bank.
Chapter II. Balance sheet and Profit and Loss account
Must know
1. Twenty per cent means influence
Holding a fifth or more of the votes is taken to mean significant influence.
Do it
2. Other banking business
Extra segments inside other banking business must be reported where they meet the test.
3. Name the related party
The name and nature of a related party tie must be shown, even with no dealings.
Background
4. Rate on the day
Applying the rate of the day is hard for items not booked in rupees.
5. Format is only a guide
The format given is an example and does not cover everything.
6. Secrecy comes first
Where telling would break a duty of secrecy set by law, the disclosure is not made.
7. Influence, not control
Significant influence is a share in policy decisions, not control over them.
8. A big holder does not
Another investor holding most of the shares does not by itself rule out influence.
9. Intangible asset rule
This standard covers intangible assets not dealt with by another standard.
10. Intangibles block a dividend
A lender holding intangible assets needs Central Government leave to pay a dividend.
11. Impairment is for fixed assets
The wear and tear rule covers fixed assets, not loans or investments.
Chapter III. Disclosure in Financial Statements – Notes to Accounts
Do it
1. Disclose in notes to accounts
What this chapter names must be shown in the notes to accounts.
2. Show the previous period
Last year's figure must be shown beside every figure for this year.
3. Narrative comparatives too
Last year's words must be given too, where they help make this year clear.
4. Non-SLR total must tie
The total shown must match the total of non-SLR investments held.
5. Break out a big industry
An industry above a tenth of all industry advances must be shown on its own.
6. Overseas assets and bad loans
Overseas assets, bad loans and income must be shown for this year and last.
7. Statutory reserves shown apart
Reserves made under the Banking Regulation Act must be shown on their own.
Background
8. These do not replace others
These are added to, and do not take the place of, what other law asks for.
9. Policies as a schedule
The main accounting policies and the notes go in as their own schedules.
10. Floating provisions may net off
Floating sums not counted in Tier 2 may be cut from gross bad loans.
Chapter IV. Other Instructions
Must know
1. Blocked Account credits
Credit entries unreconciled for more than five years move to a Blocked Account.
2. Old Nostro debits
Banks must fully provide for unreconciled Nostro debit entries older than two years.
3. Unclaimed transitory balances
Unclaimed balances in transitory accounts cannot be moved to profit or to reserves.
Do it
4. Late-report penalty
If a bank reports fraud late, it must set aside the full provision at once.
5. Deferred tax rule
Banks must set aside deferred tax on the Special Reserve under the Income Tax Act.
6. True and fair picture
The balance sheet and profit and loss account must show a true and fair picture.
Background
7. Fraud provision spreading
A bank that reports fraud on time can spread the provision over four quarters.
8. Window dressing penalty
RBI treats window dressing and hiding bad loans seriously and can take penal action.
Chapter V. Repeal and Other Provisions
1. Old cases continue
Penalties and legal cases already started under the old rules still continue.
How this rule has changed
The points above are the rule as it stands today, after every change listed here.
Issued on Nov 28, 2025. This is the date RBI put the rule out.
Changed on Jan 05, 2026.
- Define related parties. Banks must use the related party meaning given in the 2025 Credit Risk Management Directions.
- Loans sanctioned disclosure. Banks must show the total loans sanctioned to related parties during the year.
- Loans outstanding disclosure. Banks must show the total loans to related parties that are outstanding on 31st March.
Changed on Mar 16, 2026.
- New disclosure line. Banks must add this new item on payment of Deposit Insurance and Credit Guarantee Corporation premium in their reports.
- Confirm timely premium. If a bank paid deposit insurance premium on time, it must say this in its annual report.
- Disclose delay in premium. If a bank missed the due date for premium, it must state this delay in the annual report.
- Start date. These changes apply from April 1, 2026.
The same subject for other kinds of institution
The same subject for other kinds of institution.
RBI financial statement and disclosure rules for all India financial institutions
RBI financial statement and disclosure rules for commercial banks
RBI financial statement and disclosure rules for local area banks
RBI financial statement and disclosure rules for payments banks
RBI financial statement and disclosure rules for regional rural banks
RBI financial statement and disclosure rules for small finance banks
RBI financial statement and disclosure rules for urban co-operative banks
Other RBI rules for rural co-operative banks
RBI Kisan Credit Card rules for rural co-operative banks 2026
RBI capital adequacy rules for rural co-operative banks 2025
RBI credit bureau reporting rules for rural co-operative banks 2025
RBI customer service and fair conduct rules for rural co-operative banks 2025
RBI deposit interest rate rules for rural co-operative banks 2025
RBI digital banking channel rules for rural co-operative banks 2025
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