What changed
RBI issued a circular extending its March 15, 2010 guidelines on additional disclosures in notes to accounts (originally for banks) to select All India Financial Institutions. The affected AIFIs are Exim Bank, NABARD, NHB, and SIDBI. The new rules apply mutatis mutandis, meaning the same disclosure requirements now apply to these institutions.
What it means for you
Banks and AIFIs now face uniform disclosure standards, enhancing transparency and comparability. For lenders dealing with these institutions, this means more detailed financial information will be available in their notes to accounts. This could improve credit assessment and risk monitoring for exposures to these AIFIs.
What you must do
- Review the enclosed March 15, 2010 circular for specific disclosure requirements now applicable to AIFIs.
- Update internal credit assessment templates to incorporate additional disclosures from AIFIs.
- Train relationship managers on the new disclosure norms for Exim Bank, NABARD, NHB, and SIDBI.
- Monitor AIFI financial statements for compliance with the new disclosure standards.
Who it affects
Exim Bank, NABARD, NHB, SIDBI, Banks with exposure to these AIFIs, Regulatory compliance teams
Which institutions are covered by this circular?
The circular applies to select All India Financial Institutions: Exim Bank, NABARD, NHB, and SIDBI.
What is the effective date of these disclosure requirements?
The circular was issued on March 26, 2010, and the referenced bank guidelines were dated March 15, 2010. The requirements apply from that period.
Do these disclosure norms differ from those for banks?
No, the circular states that the guidelines issued to banks shall apply mutatis mutandis to the AIFIs, meaning the same requirements apply without modification.