**Summary:**
This notification, DOR.ACC.REC.No.9121/04.018/2022-23, issued by the Reserve Bank of India (RBI) on December 13, 2022, pertains to enhanced disclosure requirements for commercial banks' financial statements, specifically concerning material items. It updates the Reserve Bank of India Financial Statements Presentation and Disclosures Directions, 2021.
The key change mandates that banks disclose particulars of items within Schedule 5/IV (Other Liabilities and Provisions/Others, including provisions) and Schedule 11/V/O (Other Assets/Others) in the notes to accounts if any such item exceeds one percent of total assets. Payments Banks are additionally required to disclose particulars of items under Schedule 14/I (Other Income/Commission, Exchange, and Brokerage) exceeding one percent of total income.
The notification emphasizes transparency and encourages banks to provide more comprehensive disclosures than the minimum required if they significantly enhance the understanding of their financial position and performance.
These instructions are applicable to all commercial banks and take effect for disclosures in the notes to the annual financial statements for the year ending March 31, 2023, and onwards.
For further information, contact the Department of Regulation, Central Office, Reserve Bank of India, 12th and 13th Floor, Central Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai 400 001. Phone: 022-2260 1000. Fax: 022-2270 5691. Email: cgmicdor@rbi.org.in. The notification was issued under the authority of Usha Janakiraman, Chief General Manager. The RBI's website is www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the primary regulatory body in the document.
Reserve Bank of India Financial Statements Presentation and Disclosures Directions, 2021: A set of guidelines issued by the Reserve Bank of India regarding the presentation and disclosure of financial statements.
Commercial Banks: Refers to all commercial banks that are regulated by the Reserve Bank of India.
Payments Banks: A type of bank allowed to accept deposits, offer remittance services, and internet banking.
Schedule 14—Other Income: A specific schedule within the financial statements related to other income.
Schedule 16—Operating Expenses: A specific schedule within the financial statements related to operating expenses.
Schedule 5—Other Liabilities and Provisions: A specific schedule within the financial statements related to other liabilities and provisions.
Schedule 11—Other Assets: A specific schedule within the financial statements related to other assets.
भारतीय �रज़व� ब�क
_________________________RESERVE BANK OF INDIA ______________________
www.rbi.org.in
RBI/2022-23/155
DOR.ACC.REC.No.91/21.04.018/2022-23 December 13, 2022
Madam / Sir,
Reserve Bank of India (Financial Statements - Presentation and Disclosures)
Directions, 2021 - Disclosure of material items
Please refer to the notes and instructions for compilation of Balance Sheet and Profit
and Loss Account, for commercial banks, as specified in Annexure II to the Reserve
Bank of India (Financial Statements-Presentation and Disclosures) Directions, 2021
(hereinafter referred to as “Directions”).
2. In terms of Part A of Annexure II to the Directions, in case any item under the
subhead “Miscellaneous Income” under the head “Schedule 14-Other Income”
exceeds one per cent of total income, particulars shall be given in the notes to
accounts. Similar instructions exist in case of subhead “Other expenditure” under the
head “Schedule 16-Operating Expenses”.
3. In order to ensure greater transparency, it has been decided that banks shall also
disclose the particulars of all such items in the notes to accounts wherever any item
under the Schedule 5(IV)-Other Liabilities and Provisions-“Others (including
provisions)” or Schedule 11(VI)-Other Assets-“Others” exceeds one per cent of the
total assets.
4. Further, Payments Banks shall also disclose particulars of all such items in the notes
to accounts, wherever any item under the Schedule 14(I)-Other Income-“Commission,
Exchange and Brokerage” exceeds one per cent of the total income.
िविनयमन िवभाग,क��ीय कायार्लय, 12 व� और 13 व� मंिजल, क��ीय कायार्लय भवन, शहीद भगत �संह माग,र्फोटर्,मुंबई-400001
दरू भाष: 022-22601000 फैक्स: 022-22705691 ई-मेल: cgmicdor@rbi.org.in
____________________________________________________________________________________________________________________________
Department of Regulation, Central Office, 12th and 13th Floor, Central Office Building, Shahid Bhagat Singh Marg, Fort, Mumbai- 400 001
Tel: 022- 2260 1000 Fax: 022-2270 5691 email: cgmicdor@rbi.org.in
�हदं ी आसान ह ै इसका �योग बढ़ाइए5. We also invite attention to Clause 6 of the Chapter IV of the Directions ibid, in terms
of which more comprehensive disclosures than the minimum required are encouraged,
especially if such disclosures significantly aid in the understanding of the financial
position and performance of banks.
Applicability
6. These instructions are applicable to all commercial banks. These instructions shall
come into effect for disclosures in the notes to the annual financial statements for the
year ending March 31, 2023 and onwards.
7. The Reserve Bank of India (Financial Statements - Presentation and Disclosures)
Directions, 2021 shall stand updated to reflect these changes.
Yours faithfully,
(Usha Janakiraman)
Chief General Manager
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