What changed
The reporting threshold for large credits to CRILC has been reduced from ₹100 million to ₹50 million, effective from the quarter ending June 2014. A new sheet (Sheet 2) has been introduced for reporting SMA-2 accounts, which is frequency-neutral and can be used anytime. The December 2013 quarter return, previously on hold, must now be submitted by February 26, 2014, using the revised XBRL installer available from February 14, 2014.
What it means for you
Banks must expand their data collection to capture all borrowers with exposure of ₹5 crore and above, requiring updated PAN master data. The SMA-2 reporting mechanism is critical for forming Joint Lenders' Forums and corrective action plans, accelerating early distress recognition. Banks need to ensure systems are ready by April 1, 2014, when the new framework becomes fully effective.
What you must do
- Update PAN master data for all borrowers with fund-based and non-fund-based exposure of ₹5 crore and above, authenticated from Income Tax records.
- Submit the December 2013 quarter CRILC return by February 26, 2014, using the revised XBRL installer.
- Implement systems to report SMA-2 accounts via the new frequency-neutral sheet in CRILC.
- Test all infrastructure and outputs before April 1, 2014, to ensure full compliance with the distressed assets framework.
Who it affects
Public sector banks, Private sector banks, Foreign banks (excluding RRBs and LABs), Credit risk and compliance teams, IT and data management departments
When is the December 2013 quarter CRILC return due?
The return must be submitted within 10 working days from the date when the new installer is deployed on February 14, 2014, i.e., latest by February 26, 2014.