On 13-12-2022, the Reserve Bank of India (‘RBI’) has issued circular on Disclosure of material items under the Reserve Bank of India (Financial Statement- Presentation and Disclosures) Directions, 2021 in order to ensure greater transparency.
Applicability: Applicable to all commercial banks. The instructions of this circular will come into effect from the financial year ending 31-3-2023 and onwards.
Key Points:
- In addition to the previous disclosures, the banks, now have to disclose to the accounts, the particulars of all such items in the notes wherever any item exceeds one percent of the total assets under:
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- the Schedule 5(IV)- Other Liabilities and Provisions- “Others (including; provisions)”
- Schedule 11(VI)-Other Assets- “Others”.
- In the case of Payments Banks, such disclosure has to be made where any item under the Schedule 14(I)-Other Income- “Commission, Exchange and Brokerage” exceeds one per cent of the total income.
*Kriti Kumar, Editorial Assistant has reported this brief.