What changed
This master circular supersedes the July 2, 2007 master circular on disclosure in balance sheets, incorporating all instructions issued up to June 30, 2008. It adds disclosure requirements from the April 27, 2007 circular on the New Capital Adequacy Framework. The circular consolidates all relevant instructions listed in Annex 2.
What it means for you
Banks must ensure their financial statement notes comply with the updated disclosure requirements, including those for capital, investments, derivatives, asset quality, and exposures. The inclusion of Basel II-related disclosures means banks need to align their reporting with the new capital adequacy framework. This circular serves as a single reference point, reducing the need to track multiple circulars.
What you must do
- Review and update your bank's 'Notes to Accounts' to align with all disclosure items listed in Annex 1 of this master circular.
- Ensure compliance with the New Capital Adequacy Framework disclosure requirements from the April 27, 2007 circular.
- Train your finance and compliance teams on the updated disclosure requirements, especially for derivatives, asset quality, and exposures.
- Verify that all disclosures mandated by Accounting Standards (AS 5, 9, 15, 17, 18, 21, 22, 23, 24, 25) are included as per RBI guidelines.
Who it affects
All commercial banks (excluding RRBs and LABs), Bank finance and accounting departments, Bank compliance and risk management teams, Auditors and audit committees
Does this circular apply to Regional Rural Banks (RRBs)?
No, this master circular explicitly excludes RRBs and Local Area Banks (LABs) from its scope.
What is the legal basis for this circular?
It is a statutory guideline issued under Section 35A of the Banking Regulation Act, 1949.
Are there any new disclosure items compared to the 2007 circular?
Yes, it incorporates disclosure requirements from the New Capital Adequacy Framework circular of April 27, 2007, and consolidates all instructions up to June 30, 2008.