The Reserve Bank of India issued clarifications to the Reserve Bank of India (Financial Statements – Presentation and Disclosures) Directions, 2021, addressing banks’ and the Indian Banks’ Association’s questions on note disclosures and balance sheet compilation instructions. Lien-marked margin money deposits are to continue being classified under Schedule 3 (Deposits), with suitable disclosures, rather than under Schedule 5 (Other Liabilities and Provisions). For Schedule 9(B)(ii), advances covered by guarantees from the Credit Guarantee Fund Trust for Micro and Small Enterprises, the Credit Risk Guarantee Fund Trust for Low Income Housing, and individual schemes under the National Credit Guarantee Trustee Company Ltd. that are backed by an explicit Central Government guarantee are to be disclosed as “Advances Covered by Bank/Government Guarantee”. Disclosures on repo and reverse repo transactions are to be provided in both market value and face value terms. The instructions apply to all commercial and cooperative banks for financial statements for the financial year ending 31 March 2025 and onwards, and the 2021 Directions will be updated to reflect the changes.
Reserve Bank of India 2025-03-20
Reserve Bank of India clarifies bank financial statement disclosures on lien-marked deposits, government-backed credit guarantees and repo valuation
The Reserve Bank of India clarified the 2021 Directions on financial statement presentation and disclosures, addressing banks' queries on note disclosures and balance sheet instructions. Key updates include classifying lien-marked margin money deposits under Schedule 3, disclosing advances with government guarantees, and repo transaction reporting in market and face value terms. These apply to all commercial and cooperative banks for financial statements from the financial year ending 31 March 2025.