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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Reserve Bank of India (Urban Co-operative Banks - Financial Statements: Presentation and Disclosures) Directions, 2025

28-Nov-2025 | RBI/DoR/2025-26/289 DoR.ACC.REC.No.208/21.04.018/2025-26

RBI has issued RBI (Urban Co-operative Banks - Financial Statements: Presentation and Disclosures) Directions, 2025 effective from 28th November 2025. Key Highlights: 1. Applicability - All Urban Co-operative Banks (UCBs), meaning Primary Co-operative Banks as defined under the Banking Regulation Act. 2. Preparation of Financial Statements - Banks shall prepare the Balance Sheet and Profit and Loss Account in the formats prescribed in the Third Schedule to the BR Act, 1949. 3. Applicability of Accounting Standards - Banks shall follow all ICAI Accounting Standards applicable to Level I enterprises, subject to RBI's Directions and statutory requirements. Banks shall follow specific guidance provided for AS 5, AS 9, AS 11, AS 17, AS 18, AS 23, AS 24, AS 25, AS 26, AS 27, and AS 28 while preparing financial statements. 4. Treatment of Prior Period and Extraordinary Items - Banks shall classify, disclose, and report extraordinary items and prior-period items as required under AS 5, including materiality thresholds and Notes on Accounts disclosures. 5. Segment Reporting and Related Party Disclosures - Banks shall disclose segment-wise data under AS 17 and provide related-party information under AS 18, subject to confidentiality requirements. 6. Treatment of Investments, Intangibles, Joint Ventures, and Impairment - Banks shall apply AS 23, AS 26, AS 27, and AS 28 for associates, intangible assets, joint ventures, and impairment, with specific clarifications on applicability and exceptions. 7. Notes to Accounts and Disclosure Requirements - Banks shall present Notes to Accounts, significant accounting policies, and comparative information as separate schedules, ensuring minimum and additional disclosures. For more information, please refer to the attached document.

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