Source: Reserve Bank of India · RBI/2009-10/368 · issued 30 Mar 2010 · ~1 min read
Quick answerRBI mandates uniform classification of capital instruments in balance sheets from FY ending March 31, 2010: PNCPS under Schedule 1-Capital; IPDI, hybrid debt, PCPS, RNCPS, RCPS, and subordinated debt under Schedule 4-Borrowings.
What changed
RBI observed non-uniform accounting practices across banks for classifying regulatory capital instruments. It has now prescribed specific balance sheet schedules for each instrument type, effective from the financial year ending March 31, 2010.
What it means for you
Banks must reclassify their capital instruments to ensure consistency in financial reporting. This enhances transparency and comparability for regulators and stakeholders. Non-compliance could lead to reporting discrepancies.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review all capital instruments issued and map them to the prescribed schedules.
Update balance sheet presentation for FY ending March 31, 2010, as per the new classification.
Ensure internal accounting teams are trained on the new classification rules.
Audit current classifications to identify and rectify any mismatches.
Who it affects
All commercial banks (excluding RRBs), Finance and accounting departments, Regulatory compliance teams
It is effective from the financial year ending March 31, 2010.
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/368
DBOD.BP.BC No.81/ 21.01.002/2009-10
March 30, 2010
The Chairmen/Chief Executives of
All Commercial Banks
(excluding RRBs)
Dear Sir
Classification in the Balance Sheet - Capital Instruments
It has been observed that there is no uniformity in the accounting practice followed by banks in classifying the various regulatory capital instruments for the purpose of presentation in the Balance Sheet. We have recently examined the issue and advise that the following classification may be adopted in the balance sheet from the financial year ending March 31, 2010:
Under Schedule 1-Capital
(1) Perpetual Non-Cumulative Preference Share (PNCPS)
Under Schedule 4 – Borrowings
(2) Innovative Perpetual Debt Instruments (IPDI)
(3) Hybrid debt capital instruments issued as bonds/debentures
(4) Perpetual Cumulative Preference Shares (PCPS)
(5) Redeemable Non-Cumulative Preference Shares (RNCPS)
(6) Redeemable Cumulative Preference Shares (RCPS)
(7) Subordinated Debt
Yours faithfully,
(B. Mahapatra)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/368 · issued 30 Mar 2010. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=5554&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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