What changed
Previously, banks were required to submit their ICAAP document to RBI's Department of Banking Supervision by the end of March each year. The new circular extends this deadline to the end of the first quarter (April-June) of the relevant financial year.
What it means for you
Banks now have an additional quarter to prepare and finalize their ICAAP documents, aligning the submission with the start of the financial year. This change reduces the year-end rush and allows for more thorough capital planning and review processes.
What you must do
- Update internal compliance calendars to reflect the new ICAAP submission deadline of end-June each year.
- Ensure ICAAP documents are reviewed and approved by the board or relevant committee before the new deadline.
- Communicate the revised timeline to all departments involved in capital adequacy assessment and reporting.
Who it affects
All commercial banks (excluding Local Area Banks and Regional Rural Banks), Risk management and compliance teams, Board of directors and senior management
What is the new deadline for ICAAP submission?
Banks must submit their ICAAP document to RBI by the end of the first quarter (April-June) of the financial year, instead of the earlier March-end deadline.
Does this change apply to all banks?
Yes, it applies to all commercial banks covered under the New Capital Adequacy Framework, excluding Local Area Banks and Regional Rural Banks.
Where should the ICAAP document be submitted?
The document should be sent to the Chief General Manager-in-Charge, Department of Banking Supervision, RBI, at the World Trade Centre, Mumbai.