RBI Tightens Disclosure Norms for Banks' Balance Sheet Items
Current · Source: Reserve Bank of India · RBI/2022-23/155 · issued 13 Dec 2022 · ~2 min read
Quick answerBanks must now disclose in notes to accounts any item under 'Other Liabilities' or 'Other Assets' exceeding 1% of total assets. Payments banks also need to disclose 'Commission, Exchange and Brokerage' items crossing 1% of total income. Effective for FY ending March 2023.
The rule, in the simplest words
If a bank has a big item (over 1% of all its stuff) under 'Other Liabilities' or 'Other Assets', it must explain it in a special note.
Payments banks must also explain any big item (over 1% of all income) under 'Commission, Exchange and Brokerage' in a note.
This rule starts for the financial year ending March 2023, so banks must check their numbers for that year.
Banks should set up their computer systems to automatically spot items that are bigger than 1% of total assets or income.
How it plays out — a real example
Ravi, a branch operations officer in Indore, is preparing his bank's annual accounts for March 2023. He notices that a large 'Other Assets' item—a pending insurance claim—is 1.5% of total assets. Following the new RBI rule, he adds a clear note explaining this claim, so his manager and auditors can see exactly what it is.
What changed
RBI expanded disclosure requirements under the Financial Statements Directions, 2021. Previously, only 'Miscellaneous Income' and 'Other Expenditure' items above 1% of total income needed note disclosure. Now, any item under 'Other Liabilities and Provisions' or 'Other Assets' exceeding 1% of total assets must also be detailed. Payments banks additionally must disclose 'Commission, Exchange and Brokerage' items above 1% of total income.
What it means for you
Banks need to enhance granularity in financial reporting, especially for large miscellaneous balance sheet items. This increases transparency for regulators and stakeholders, potentially revealing hidden concentrations or risks. Lenders must update their financial statement preparation processes to identify and disclose these thresholds accurately.
What you must do
Review all items under Schedule 5(IV) 'Other Liabilities' and Schedule 11(VI) 'Other Assets' for those exceeding 1% of total assets.
For payments banks, also check Schedule 14(I) 'Commission, Exchange and Brokerage' items above 1% of total income.
Update notes to accounts for annual financial statements from March 31, 2023 onwards to include these disclosures.
Ensure internal reporting systems can flag items crossing the 1% threshold automatically.
Who it affects
All commercial banks, Payments banks, Finance and accounting teams, Auditors and compliance officers
❓ Common questions
What is the threshold for disclosing items under 'Other Liabilities' or 'Other Assets'?
Any item under these heads that exceeds one per cent of total assets must be disclosed in the notes to accounts.
When do these new disclosure rules take effect?
They apply to annual financial statements for the year ending March 31, 2023 and onwards.
Are payments banks subject to any additional disclosure requirement?
Yes, payments banks must also disclose items under 'Commission, Exchange and Brokerage' that exceed one per cent of total income.
📜 Read the original circular — full text as issued by RBI
RBI/2022-23/155
DOR.ACC.REC.No.91/21.04.018/2022-23
December 13, 2022
Madam/Sir,
Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021 - Disclosure of material items
Please refer to the notes and instructions for compilation of Balance Sheet and Profit and Loss Account, for commercial banks, as specified in Annexure II to the Reserve Bank of India (Financial Statements-Presentation and Disclosures) Directions, 2021 (hereinafter referred to as “Directions”).
2. In terms of Part A of Annexure II to the Directions, in case any item under the subhead “Miscellaneous Income” under the head “Schedule 14-Other Income” exceeds one per cent of total income, particulars shall be given in the notes to accounts. Similar instructions exist in case of subhead “Other expenditure” under the head “Schedule 16-Operating Expenses”.
3. In order to ensure greater transparency, it has been decided that banks shall also disclose the particulars of all such items in the notes to accounts wherever any item under the Schedule 5(IV)-Other Liabilities and Provisions-“Others (including provisions)” or Schedule 11(VI)-Other Assets-“Others” exceeds one per cent of the total assets.
4. Further, Payments Banks shall also disclose particulars of all such items in the notes to accounts, wherever any item under the Schedule 14(I)-Other Income-“Commission, Exchange and Brokerage” exceeds one per cent of the total income.
5. We also invite attention to Clause 6 of the Chapter IV of the Directions ibid, in terms of which more comprehensive disclosures than the minimum required are encouraged, especially if such disclosures significantly aid in the understanding of the financial position and performance of banks.
Applicability
6. These instructions are applicable to all commercial banks. These instructions shall come into effect for disclosures in the notes to the annual financial statements for the year ending March 31, 2023 and onwards.
7. The Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021 shall stand updated to reflect these changes.
Yours faithfully,
(Usha Janakiraman)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/155 · issued 13 Dec 2022. The plain-English explanation above is BankPulse’s own independent summary.
Ensure internal reporting systems can flag items crossing the 1% threshold automatically.
📜 Compliance
Review all items under Schedule 5(IV) 'Other Liabilities' and Schedule 11(VI) 'Other Assets' for those exceeding 1% of total assets.
For payments banks, also check Schedule 14(I) 'Commission, Exchange and Brokerage' items above 1% of total income.
Update notes to accounts for annual financial statements from March 31, 2023 onwards to include these disclosures.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are a Compliance officer at a bank this circular applies to (All commercial banks, Payments banks, Finance and accounting teams, Auditors and compliance officers), your first concrete step on “RBI Tightens Disclosure Norms for Banks' Balance Sheet Items” is: “Review all items under Schedule 5(IV) 'Other Liabilities' and Schedule 11(VI) 'Other Assets' for those exceeding 1% of total assets.” (RBI issued this 13 Dec 2022).
Action required: Review all items under Schedule 5(IV) 'Other Liabilities' and Schedule 11(VI) 'Other Assets' for those exceeding 1% of total assets.
Action required: For payments banks, also check Schedule 14(I) 'Commission, Exchange and Brokerage' items above 1% of total income.
Action required: Update notes to accounts for annual financial statements from March 31, 2023 onwards to include these disclosures.
Action required: Ensure internal reporting systems can flag items crossing the 1% threshold automatically.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12426&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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