Date: 2023-10-25Category: Not ApplicableState: Union GovernmentCountry: India
Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021: Presentation of unclaimed liabilities transferred to Depositor Education and Awareness (DEA) Fund
**Policy Summary: RBI Directive on Presentation of Unclaimed Liabilities Transferred to Depositor Education and Awareness (DEA) Fund**
This Reserve Bank of India (RBI) directive, reference number RBI/2023-24/71 DOR.ACC.4721/04.01.018/2023-24 dated October 25, 2023, addresses the presentation and disclosure of unclaimed liabilities transferred to the Depositor Education and Awareness (DEA) Fund within the financial statements of banks.
The directive clarifies that all commercial and co-operative banks are required to present all unclaimed liabilities, where the amount due has been transferred to the DEA Fund under the DEA Fund Scheme, 2014, under 'Schedule 12 – Contingent Liabilities – Other items for which the bank is contingently liable' (or 'Contingent Liabilities Others').
Furthermore, banks must explicitly specify in the disclosures within the notes to accounts of their financial statements that balances transferred to the DEA Fund are included under the aforementioned 'Schedule 12' or 'Contingent Liabilities Others,' as applicable. This requirement is further detailed in Clause C.10 of Annex III to the Master Direction on Transfers to DEA Fund.
These instructions are applicable to all commercial and cooperative banks for the preparation of financial statements for the financial year ending March 31, 2024, and onwards.
The RBI Financial Statements Presentation and Disclosures Directions, 2021, are updated to reflect these changes.
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. Telephone: 022-2260 1000; Fax: 022-2270 5691; email: cgmicdor@rbi.org.in. The directive was issued by Usha Janakiraman, Chief General Manager.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector.
RBI20232471 DOR.ACC.4721.04.018202324: Reference number for the circular issued by the Reserve Bank of India.
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 by banks.
Depositor Education and Awareness DEA Fund: A fund established to promote depositor education and awareness.
DEA Fund Scheme, 2014: The scheme under which the Depositor Education and Awareness DEA Fund was established.
Schedule 12 Contingent Liabilities: A specific schedule in the financial statements where contingent liabilities are reported.
Mumbai, Maharashtra: City in India where the Central Office of the Department of Regulation, Reserve Bank of India is located.
Usha Janakiraman: Chief General Manager at Reserve Bank of India.
भारतीय �रज़व� ब�क
_________________________RESERVE BANK OF INDIA ______________________
RBI/2023-24/71
DOR.ACC.47/21.04.018/2023-24 October 25, 2023
Madam / Sir,
Reserve Bank of India (Financial Statements - Presentation and Disclosures)
Directions, 2021: Presentation of unclaimed liabilities transferred to Depositor
Education and Awareness (DEA) Fund
The ‘Notes and Instructions for compilation’ given in Annex II to the Reserve Bank of India
(Financial Statements - Presentation and Disclosures) Directions, 2021 (Master Direction)
require commercial banks to present all unclaimed liabilities, where the amount due has
been transferred to the Depositor Education and Awareness (DEA) Fund established
under the DEA Fund Scheme, 2014, under ‘Schedule 12- Contingent Liabilities - Other
items for which the bank is contingently liable’.
2. To ensure consistency in presentation of financial statements, it is advised that all co-
operative banks shall present all unclaimed liabilities (where the amount due has been
transferred to DEA Fund) under “Contingent Liabilities – Others”.
3. Further, all banks shall specify in the disclosures1 in the notes to accounts to the
financial statements that balances of the amount transferred to DEA Fund are included
under 'Schedule 12 - Contingent Liabilities - Other items for which the bank is contingently
liable' or 'Contingent Liabilities - Others,' as the case may be.
Applicability
4. These instructions are applicable to all commercial and cooperative banks for
preparation of financial statements for the financial year ending March 31, 2024 and
onwards.
1 Clause C.10 of Annex III to the Maser Direction ibid on “Transfers to DEA Fund”.
ि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. The Reserve Bank of India (Financial Statements - Presentation and Disclosures)
Directions, 2021 stands updated to reflect these changes.
Yours faithfully,
(Usha Janakiraman)
Chief General Manager
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