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The Reserve Bank of India (RBI), vide a notification dated 13 December 2022 issued certain amendments to the RBI (Financial Statements – Presentation and Disclosures) Directions, 2021 (the Directions). The amendments are applicable to all commercial banks.

Part A of Annexure II to the Directions specify the notes and instructions for compilation of balance sheet and profit and loss account for commercial banks. The amendment emphasises on the disclosure of material items by the commercial banks in their financial statements. Some of the key changes introduced are summarised in the table below:

Schedule reference Financial statement item Change introduced
Schedule 5(IV)- Other liabilities and provisions - Others (including provisions) If any item classified under Schedule 5(IV) or Schedule 11(VI) exceeds one per cent of the total assets, particulars of those items must be disclosed in the notes to accounts
Schedule 11(VI) Other assets - Others

Further, Payments Banks should also disclose particulars of all such items in the notes to accounts, wherever any item under the Schedule 14(I)-Other Income-“Commission, Exchange and Brokerage” exceeds one per cent of the total income.

Effective date: The amendments are effective for disclosures in the notes to the annual financial statements for the year ending 31 March 2023 and onwards.

To access the text of the notification, please click here

To access the text of the amended Regulations, please click here

Action Points for Auditors

Since the amendments are applicable for the annual financial statements for the year ending 31 March 2023 and onwards, auditors should proactively engage with the banking companies regarding these additional disclosure requirements.

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