DEA Fund Transfers: New Disclosure Rules for Banks
Current · Source: Reserve Bank of India · RBI/2023-24/71 · issued 25 Oct 2023 · ~1 min read
Quick answerRBI now requires all cooperative banks to show unclaimed liabilities transferred to the DEA Fund under 'Contingent Liabilities – Others', aligning with commercial banks. This applies from FY ending March 2024 onwards.
The rule, in the simplest words
Cooperative banks must now show unclaimed money (money people forgot to take from the bank) that was sent to the DEA Fund (a special government fund for teaching customers about banking) under 'Contingent Liabilities – Others' (a list of possible future payments).
All banks must add a note in their financial reports saying that the DEA Fund money is included in their contingent liabilities (possible future payments).
This rule starts for financial reports ending March 2024 and onwards.
Before this rule, only commercial banks (big banks like SBI) had to show this; now cooperative banks (smaller banks owned by members) must do the same.
How it plays out — a real example
A co-operative bank branch officer in Indore, Priya, is preparing her cooperative bank's annual report for March 2024. She remembers the new RBI rule and moves the ₹2 lakh in unclaimed fixed deposits transferred to the DEA Fund from a general ledger to 'Contingent Liabilities – Others' in the financial statement. She also adds a clear note in the report explaining this change, ensuring her bank passes the audit without any issues.
What changed
Previously, only commercial banks had to present unclaimed liabilities transferred to the DEA Fund under Schedule 12 – Contingent Liabilities. Now, cooperative banks must also show these under 'Contingent Liabilities – Others'. Additionally, all banks must explicitly disclose in notes to accounts that DEA Fund balances are included in contingent liabilities.
What it means for you
This ensures uniform presentation of DEA Fund-related liabilities across all bank types, improving comparability of financial statements. Banks need to update their financial reporting templates and disclosure notes to comply from FY24. Failure to adjust may lead to audit observations or regulatory non-compliance.
What you must do
Update financial statement templates to classify DEA Fund transfers under 'Contingent Liabilities – Others' for cooperative banks.
Add a specific note in disclosures stating that DEA Fund balances are included in contingent liabilities.
Train finance teams on the revised presentation requirements for FY24 year-end reporting.
Review past financial statements to ensure consistency from March 2024 onwards.
Who it affects
All commercial banks, All cooperative banks, Bank finance and accounting departments, Auditors reviewing financial statements
❓ Common questions
Does this apply to all banks or only certain types?
It applies to both commercial and cooperative banks for financial statements from FY ending March 2024.
What if my bank already shows DEA Fund transfers under contingent liabilities?
You still need to add a specific disclosure note in the notes to accounts confirming that DEA Fund balances are included in contingent liabilities.
📜 Read the original circular — full text as issued by RBI
RBI/2023-24/71
DOR.ACC.47/21.04.018/2023-24
October 25, 2023
Madam / Sir,
Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021: Presentation of unclaimed liabilities transferred to Depositor Education and Awareness (DEA) Fund
The ‘Notes and Instructions for compilation’ given in Annex II to the Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021 (Master Direction) require commercial banks to present all unclaimed liabilities, where the amount due has been transferred to the Depositor Education and Awareness (DEA) Fund established under the DEA Fund Scheme, 2014, under ‘Schedule 12- Contingent Liabilities - Other items for which the bank is contingently liable’.
2. To ensure consistency in presentation of financial statements, it is advised that all co-operative banks shall present all unclaimed liabilities (where the amount due has been transferred to DEA Fund) under “Contingent Liabilities – Others”.
3. Further, all banks shall specify in the disclosures 1 in the notes to accounts to the financial statements that balances of the amount transferred to DEA Fund are included under 'Schedule 12 - Contingent Liabilities - Other items for which the bank is contingently liable' or 'Contingent Liabilities - Others,' as the case may be.
Applicability
4. These instructions are applicable to all commercial and cooperative banks for preparation of financial statements for the financial year ending March 31, 2024 and onwards.
5. The Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021 stands updated to reflect these changes.
Yours faithfully,
(Usha Janakiraman)
Chief General Manager
1 Clause C.10 of Annex III to the Maser Direction ibid on “Transfers to DEA Fund”.
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2023-24/71 · issued 25 Oct 2023. The plain-English explanation above is BankPulse’s own independent summary.
Example: if you are a Compliance officer at a bank this circular applies to (All commercial banks, All cooperative banks, Bank finance and accounting departments, Auditors reviewing financial statements), your first concrete step on “DEA Fund Transfers: New Disclosure Rules for Banks” is: “Update financial statement templates to classify DEA Fund transfers under 'Contingent Liabilities – Others' for cooperative banks.” (RBI issued this 25 Oct 2023).
Circular: RBI/2023-24/71 -- DEA Fund Transfers: New Disclosure Rules for Banks
Issued: 25 Oct 2023
Action required: Update financial statement templates to classify DEA Fund transfers under 'Contingent Liabilities – Others' for cooperative banks.
Action required: Add a specific note in disclosures stating that DEA Fund balances are included in contingent liabilities.
Action required: Train finance teams on the revised presentation requirements for FY24 year-end reporting.
Action required: Review past financial statements to ensure consistency from March 2024 onwards.
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
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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=12552&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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