What changed
RBI revised the monthly return format for NBFCs not accepting public deposits with assets of Rs. 100 crore and above. The revised format adds a cumulative profit and loss account position, age-wise breakup of NPAs, doubtful assets, and loss assets. It also introduces reporting of bank/FI exposure on working capital, capital market exposure details (including loans for equity investments and against shares), and separate data for convertible and non-convertible bonds/debentures. Additionally, foreign sources of funds now require purpose/deployment details.
What it means for you
NBFCs must enhance their data reporting systems to capture cumulative financials and granular asset quality details. The new capital market exposure and foreign funds sections increase transparency on risk concentrations. Non-submission will attract penal action, so compliance is critical. Lenders and investors can expect more detailed insights into NBFC health from these returns.
What you must do
- Update internal reporting systems to capture cumulative P&L and age-wise NPA data as per revised format.
- Ensure capital market exposure data includes loans for equity investments, against shares, and separate bond/debenture types.
- Prepare to report foreign sources of funds with purpose and deployment details.
- Submit the first revised monthly return for May 2006, adhering to existing timelines and submission methods.
- Verify compliance to avoid penal action for non-submission.
Who it affects
NBFCs not accepting public deposits with assets of Rs. 100 crore and above, Compliance and reporting teams of affected NBFCs, RBI supervisory departments monitoring NBFCs
When is the first revised return due?
The first monthly return in the revised format must be submitted for the month of May 2006.
What happens if we don't submit the return?
Non-submission of the return will attract penal action from the RBI.
Are the reporting timelines and methods changed?
No, the instructions about time and manner of reporting remain unchanged from the earlier circular dated September 6, 2005.