What changed
RBI has withdrawn the requirement for AD Category-I banks to submit a separate monthly LRS return (code R089) from September 2024 onwards. Instead, banks will only need to upload transaction-wise LRS information through the existing daily return (code R010) on CIMS by the close of the next working day. Several earlier circulars mandating the monthly return have been withdrawn.
What it means for you
This change simplifies LRS reporting for banks by eliminating a redundant monthly aggregate return. Banks must ensure their systems are aligned to capture all LRS transactions accurately in the daily return, including filing a NIL report when no transactions occur. The move reduces compliance overhead but requires vigilance to maintain data quality in the daily submission.
What you must do
- Stop submitting the monthly LRS return (R089) from September 2024 onwards.
- Ensure all LRS transactions are uploaded transaction-wise in the daily return (R010) on CIMS by the next working day.
- File a NIL report on the daily return if no LRS transactions occur on a given day.
- Update internal reporting systems and train staff on the revised process.
- Communicate the change to relevant branches and constituents as required.
Who it affects
AD Category-I banks, Compliance and reporting teams handling LRS, IT teams managing CIMS submissions
What is the effective date for discontinuing the monthly LRS return?
The monthly LRS return (R089) is discontinued from the reporting month of September 2024. Banks should not submit it for that month onward.
What should we do if there are no LRS transactions on a given day?
You must upload a 'NIL' report in the daily return (R010) on CIMS by the close of the next working day.
Which earlier circulars are withdrawn by this change?
Circulars dated April 04, 2008, May 23, 2013, April 12, 2018, June 17, 2021, and December 22, 2023 related to the monthly LRS return are withdrawn.