What changed
RBI revised the calendar of reviews for public sector banks, reducing the total number of mandatory reviews by leveraging the work of board committees. The basic structure from the 2000 calendar is retained, but the focus is on present-day concerns. The revised schedule takes effect from July 1, 2005.
What it means for you
Banks can now streamline board meetings by relying more on committee reports, reducing the burden on boards. The calendar sets a critical minimum, allowing banks flexibility to add reviews as needed. This shift encourages more strategic discussions on market trends, regulatory changes, and risk management.
What you must do
- Implement the revised calendar of reviews from July 1, 2005, as per Annex I to III.
- Ensure every board meeting includes reports on funds management, position, compliance on exception basis, and committee reports.
- Submit quarterly reviews on borrowal accounts above Rs. 1 crore and working results with analytical notes.
- If a review is delayed, place a note before the board explaining reasons and proposed timeline.
Who it affects
All public sector banks, Board of Directors, Management Committee, Audit Committee
What is the effective date for the revised calendar?
The revised calendar of reviews comes into force from July 1, 2005.
Can banks add more reviews beyond the minimum specified?
Yes, the calendar outlines critical minimum requirements, and bank boards have discretion to prescribe additional reviews to suit their needs.
What happens if a review cannot be placed on time?
A note must be submitted to the board explaining the reasons for delay and when the review is proposed to be placed.