RBI issues Master Direction on Financial Statements – Presentation and Disclosures for banks.
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The Reserve Bank of India has, from time to time, issued several guidelines/instructions/directives to the banks on the presentation of financial statements, regulatory clarification on compliance with accounting standards, and disclosures in notes to accounts.
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A Master Direction incorporating, updating and where required, harmonizing across the banking sector the extant guidelines/instructions/directives on the subject has been prepared to enable banks to have all current instructions on presentation and disclosure in financial statements at one place for reference.
Reserve Bank of India (Financial Statements – Presentation and Disclosures) Directions, 2021.
These Directions are applicable to:
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(a) all banking companies, corresponding new banks, regional rural banks (‘RRBs’) and State Bank of India as defined under subsections (c), (da), (ja) and (nc) of section 5 of the Banking Regulation Act, 1949 (collectively referred to as ‘Commercial Banks’ hereinafter)
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(b) primary co-operative banks as defined under clause (ccv) of subsection 1 of section 56 of the Banking Regulation Act, 1949 (hereinafter referred to as ‘Urban Co-operative Banks’ or ‘UCBs’)
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These Master Directions, apart from providing for format of the Balance Sheet and Profit and Loss Account, Notes and instructions for compilation and required disclosure in financial statements, specify various instructions .
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However, in addition to master directions, Commercial Banks are required to comply with the disclosures specified under the applicable regulatory capital framework.
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Reserve Bank of India has issued the Master Direction in the exercise of its powers conferred under section 35A and section 56 of the Banking Regulation Act, 1949, and all the powers enabling it on this behalf.Â
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