What changed
RBI announced interim recommendations from the Regulations Review Authority (RRA 2.0) to discontinue or merge three returns: Return on Offshore Banking Units, Statement on bad debts written off, and Fraud Monitoring Return 2 for NBFCs. Additionally, eight returns, including those on financial conglomerates, audit reports, investment portfolio, fraud monitoring, and KYC-AML, will be converted to online submission.
What it means for you
Banks and NBFCs can expect reduced paperwork and streamlined reporting as certain returns are phased out or merged. The shift to online filing for key returns like fraud monitoring and audit reports will improve data accuracy and ease compliance. However, exact implementation dates are pending, so entities should prepare for the transition without immediate action.
What you must do
- Review the list of discontinued returns (Annex 1) and stop preparing them once official discontinuation date is announced.
- Identify the eight returns slated for online filing (Annex 2) and ensure your systems can support web-based submission.
- Monitor RBI notifications for the exact effective dates of these changes.
- Update internal compliance checklists to reflect the new reporting landscape.
Who it affects
All Scheduled Commercial Banks, All Payments Banks, All Small Finance Banks, All Co-operative Banks, All NBFCs, All Credit Rating Agencies
Which returns are being discontinued?
Three returns: Return on Offshore Banking Units (quarterly), Statement on bad debts written off (yearly), and Fraud Monitoring Return 2 for NBFCs (quarterly).
When will these changes take effect?
The exact date of discontinuation/merger and online filing will be notified by RBI in due course. No immediate action is required until then.
What returns are moving to online submission?
Eight returns, including those on financial conglomerates, whole bank long form audit report, half-yearly investment portfolio review, fraud monitoring returns (FMR1, FMR3, and unified for frauds below ₹1 lakh), delay in rating review by CRAs, and KYC-AML return.