RBI tweaks norms to standardise filing of supervisory returns by banks, NBFCs

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Reserve Bank of India (RBI) on Tuesday issued Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024 to bring clarity, brevity and harmonization to the instructions issued to various supervised entities for submission of returns. The move aims to reduce the burden of compliance on the regulated entities based on the recommendations of the Regulations Review Authority and an Internal Working Group of the apex bank.

"In order to create a single reference for all supervisory returns and to harmonise the timelines for filing of returns, all the relevant instructions have been rationalised and consolidated into a single Master Direction," the RBI said in a circular. The apex bank said these directions will be applicable to all commercial banks (PSBs, Private Sector Banks, SFBs, Payment Banks, and Foreign Banks), Urban Co-operative Banks, All India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI and NABFID), all NBFCs, and Asset Reconstruction Companies (ARCs).

The RBI excluded Regional Rural Banks and Housing Finance Companies from the aforesaid norms. The RBI further said the PSBs must submit half-yearly and quarterly reviews of accounts within 21 days from the date of receipt of the statutory central auditor (SCA) report.

Earlier, banks could submit the reviews whenever it was provided by the SCA. The RBI also mandated lenders to submit interest rate sensitivity returns within 15 days for all months, as against previously mandated quarterly returns within 21 days.