The Reserve Bank of India (RBI) on March 16, 2026 issued the Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Second Amendment Directions, 2026, amending the existing disclosure framework under the Reserve Bank of India (Local Area Banks – Financial Statements: Presentation and Disclosures) Directions, 2025.
The amendment revises paragraph 10(12)(vi) relating to payment of deposit insurance premium to the Deposit Insurance and Credit Guarantee Corporation (DICGC). Under the revised provision, Local Area Banks must disclose in their annual financial statements whether the DICGC insurance premium has been paid within the prescribed timelines, along with reporting of any arrears in payment, if applicable.
The change has been introduced following the implementation of the Risk Based Premium (RBP) Framework issued by DICGC and aims to improve transparency in financial reporting by banks. The amended disclosure requirement will come into force from April 1, 2026.
[Notification No. RBI/DOR/2025-26/246 – DOR.ACC.REC.No.441/21.04.018/2025-26]
