In a move aimed at streamlining reporting procedures and reducing compliance burdens, the Reserve Bank of India (RBI) has issued new directions for the submission of supervisory returns by various regulated entities.
The RBI’s latest initiative, titled ‘Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024’, consolidates and rationalizes existing instructions into a single comprehensive framework. This move, based on recommendations from the Regulations Review Authority and an Internal Working Group of the RBI, seeks to bring clarity, brevity, and harmonization to reporting requirements.
The scope of these new directions covers a wide range of entities, including commercial banks (both public sector banks, private sector banks, small finance banks, payment banks, and foreign banks), Urban Co-operative Banks, All India Financial Institutions (such as Exim Bank, NABARD, NHB, SIDBI, and NABFID), as well as all Non-Banking Financial Companies (NBFCs) and Asset Reconstruction Companies (ARCs).
However, regional rural banks and housing finance companies have been excluded from these norms.
One significant change involves Public Sector Banks (PSBs) now required to submit half-yearly and quarterly reviews of accounts within 21 days from the receipt of the statutory central auditor (SCA) report. Previously, banks could submit these reviews whenever provided by the SCA.
Additionally, the RBI has tightened timelines for interest rate sensitivity returns, mandating lenders to submit these returns within 15 days for all months. This is a shift from the previous requirement of quarterly returns within 21 days.
The RBI has also emphasized the consequences of non-compliance with these directions. Any supervised entity found in violation may face penalties or fines under the relevant provisions of the Banking Regulation Act, 1949, the Reserve Bank of India Act, 1934, or the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002.
