RBI ask banks, NBFCs to strengthen risk data reporting, changes timeline for filing

Reserve Bank of India

The Reserve Bank of India (RBI) on February 27 asked banks and non-banking finance companies to strengthen reporting of risk data in their domestic and overseas bank units, besides changing timeline for filing risk data report by different lenders.

In its master direction on the filing of supervisory returns for supervised entities released today the RBI said the idea behind the circular is to bring clarity, brevity and harmonization for banks and NBFCs for submission of returns and improve compliance.

The central bank in the revised guidelines said all audited returns of commercial banks should be filed within 5 working days from the date of signing of the Auditor’s report. In the earlier guidelines, the timeline was with 7 days.

The RBI said regulated entities needs to file alance Sheet Analysis (BSA) – Annual Return within 5 working days from the date of signing of the Auditor’s report. Interest Rate Sensitivity Return (IRS) for all the month shall be submitted within 15 days for commercial banks, RBI said.

Half yearly/ Quarterly Review of Accounts of Public Sector Banks – Review Report by Statutory Central Auditors (SCAs) should be submitted Within 21 days from the date of receipt of the report from the SCAs in the matter, RBI said.

The directions further said ALM 2 and ALM 3 (Fortnightly) return to be submitted within 7 days from the Reference date for Urban Co-operative banks.

The Master Direction provides a broader framework to understand the purpose of the returns and harmonises the timelines for their submission, RBI said in a release.

“This is part of a series of steps initiated by RBI to reduce the burden of compliance on the regulated entities based on the recommendations of the Regulations Review Authority (RRA 2.0) and an Internal Working Group of RBI,” the release said.

In August monetary policy, the central bank had proposed to consolidate all the existing instructions on submission of data into a single Master Direction which will be a single point of reference for all supervised entities.