What changed
RBI issued a master circular consolidating all previous disclosure guidelines for all-India term-lending and refinancing institutions up to June 30, 2013. The circular updates the 2012 version and includes annexes with detailed disclosure formats for capital, asset quality, credit concentration, liquidity, operating results, provisions, restructured accounts, derivatives, and more.
What it means for you
Banks and financial institutions must ensure their Notes to Accounts follow the standardized disclosure formats prescribed in this circular, enhancing transparency and comparability. The circular sets minimum disclosure requirements; institutions can add more if needed. Compliance is critical for regulatory reporting and audit authentication.
What you must do
- Update internal disclosure templates to align with the master circular's annexes and guidelines.
- Train finance and compliance teams on the new consolidated disclosure requirements.
- Ensure Notes to Accounts include all mandatory items: CRAR, asset quality, liquidity, provisions, restructured accounts, and derivative risks.
- Review and update policies for reporting issuer composition of debt securities and risk exposure in derivatives.
Who it affects
Exim Bank, NABARD, NHB, SIDBI, All-India term-lending and refinancing institutions, Auditors of these institutions
What is the effective date of this master circular?
The circular is dated July 1, 2013, and consolidates instructions up to June 30, 2013. It applies from the financial year 2013-14 onwards.
Does this circular apply to commercial banks?
No, it applies only to all-India term-lending and refinancing institutions: Exim Bank, NABARD, NHB, and SIDBI. Banks have separate disclosure norms.
Are these disclosure requirements mandatory or optional?
They are mandatory minima. Institutions must include them in Notes to Accounts, but they can voluntarily make additional disclosures.