August 30, 2021<\/p>\n
All Commercial Banks and
\nPrimary (urban) Cooperative Banks<\/p>\n
Madam\/ Dear Sir,<\/p>\n
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
\ndisclosures in notes to accounts.<\/p>\n
2. 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. However, it may be noted that in addition to these disclosures, Commercial Banks shall comply with the disclosures specified under the applicable regulatory capital framework.<\/p>\n
3. Reserve Bank of India has issued this 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<\/p>\n
Yours faithfully,
\n-sd-
\n(Usha Janakiraman)
\nChief General Manager<\/p>\n
Reserve Bank of India (Financial Statements – Presentation and Disclosures)<\/strong> In exercise of the powers conferred by section 35A and section 56 of the Banking Regulation Act, 1949 the Reserve Bank of India being satisfied that it is necessary and expedient in the public interest and in the interest of banking policy to do so, hereby, issues the Directions hereinafter specified.<\/p>\n Chapter \u2013 I<\/strong> 1. Short title and commencement<\/strong><\/p>\n a) These Directions shall be called the Reserve Bank of India (Financial Statements – Presentation and Disclosures) Directions, 2021.<\/p>\n b) These Directions shall come into effect on the day these are placed on the official website of the Reserve Bank of India.<\/p>\n 2. Applicability<\/strong><\/p>\n These Directions shall be applicable to:<\/p>\n a) all banking companies1, corresponding new banks, regional rural banks (\u2018RRBs\u2019) 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 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 \u2018Urban Co-operative Banks\u2019 or \u2018UCBs\u2019).<\/p>\n The term \u2018banks\u2019 used in these directions shall include both Commercial Banks and UCBs.<\/p>\n Chapter \u2013 II<\/strong> <\/p>\n 3. In terms of the provisions of section 29 of the Banking Regulation Act, 1949, Commercial Banks shall in respect of all business transacted by them prepare a Balance Sheet and Profit and Loss Account as on the last working day of the year or the period, as the case may be, in the Forms set out in the Third Schedule of the Banking Regulation Act, 1949. In exercise of the powers conferred by section 29(4) of the Banking Regulation Act, 1949, the Government of India has specified the Forms in the Third Schedule, vide notification S.O.240 (E) dated March 26, 1992, published in the Gazette of India. These are reproduced in Annexure I to these Directions.<\/p>\n 4. In terms of the provisions of section 29 read with section 56 of the Banking Regulation\u00a0 Act, 1949, UCBs shall in respect of all business transacted by them prepare a Balance Sheet and Profit and Loss Account as on the last working day of the year or the period, as the case may be, in the Forms set out in the Third Schedule of the Banking
\nDirections, 2021<\/strong><\/p>\n
\nPreliminary<\/strong><\/p>\n
\n\u2018Commercial Banks\u2019 hereinafter)<\/p>\n
\nFormat of the Balance Sheet and Profit and Loss Account<\/strong><\/p>\n
\nRegulation Act, 1949 as substituted by clause (zl) of section 56 of the said Act.<\/p>\n