What changed
RBI announced the creation of a central repository for large common exposures across banks, leveraging data from the Return on Large Borrowers (Form A, Part D) which captures fund and non-fund based exposures above Rs 10 crore. This follows Governor Rajan's September 4, 2013 statement on collecting credit data to monitor building leverage and common exposures. Banks are now directed to submit accurate data, with penal consequences for errors or omissions.
What it means for you
Banks must now treat large credit data submission with heightened seriousness, as RBI will use it to identify systemic concentration risks. The repository will be shared with banks, enabling them to detect over-leverage and common exposures across the system. Non-compliance or inaccurate reporting can lead to penalties under Section 27(2) and Section 35A of the Banking Regulation Act.
What you must do
- Ensure all large credit data (exposures > Rs 10 crore) in Return on Large Borrowers (Form A, Part D) is accurate and complete.
- Implement internal checks to verify data integrity before submission to RBI via the XBRL-based system.
- Review OSMOS reporting processes to avoid penalties for non-submission or wrong reporting.
- Train relevant staff on the directive's requirements and the importance of data quality.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Credit risk and reporting teams, Compliance and data management departments
What is the threshold for exposures to be reported in this repository?
The repository captures system-wide exposures (both fund and non-fund based) of individuals and entities exceeding Rs 10 crore, as reported in the Return on Large Borrowers (Form A, Part D).
What are the penalties for non-compliance with this directive?
Non-submission or wrong reporting of data in OSMOS returns attracts penalties as specified under the Banking Regulation Act, 1949, as per the powers vested in RBI.
How will this repository benefit banks?
RBI will share the central repository with banks, enabling them to identify building leverage and common exposures across the banking system, thus improving risk awareness.