RBI Proposes Uniform Disclosure Rules for All Banks

The Reserve Bank of India (RBI) has issued draft norms proposing a uniform disclosure framework for all commercial banks, as per news reports. The proposal covers listed and unlisted lenders, along with foreign bank branches operating in India. 

The draft seeks to standardise Basel-related disclosures across institutions. The RBI said differences in reporting formats currently make comparisons difficult for depositors, investors and market participants reviewing bank data. 

Standard Formats for Financial Data 

Under the proposal, banks will have to follow common templates for reporting capital adequacy details, capital composition, and risk-weighted assets. The central bank has also proposed that all figures be disclosed in rupees crore. 

The draft states that banks must retain all rows in disclosure tables even if a particular field is not applicable. Instead of removing entries, lenders will need to mark them accordingly to maintain consistency across reporting periods. 

The RBI said standard formats would make disclosures easier to compare across banks and improve clarity in financial reporting. 

Website Disclosures and Archiving 

Banks will also be required to maintain a separate section on their websites for regulatory disclosures. These disclosures must remain accessible for at least 10 years under the proposed framework. 

The central bank said long-term availability of disclosures would help stakeholders track financial performance and risk positions across economic cycles. The requirement will apply to all commercial banks covered under the framework. 

The draft additionally places responsibility on senior management for the accuracy of disclosures. Whole-time directors will be required to certify that the information submitted is accurate and complies with regulatory requirements. 

Basel Disclosure Alignment 

The proposal is linked to Basel disclosure standards followed in banking regulation. The RBI said the revised framework is intended to bring greater uniformity in the presentation of regulatory data across lenders. 

The draft norms apply to public sector banks, private sector banks, small finance banks, and foreign bank branches operating in the country. The RBI has invited comments on the proposal before finalising the framework. 

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Conclusion 

The proposed guidelines seek to bring consistency in Basel-related disclosures across listed, unlisted and foreign banks operating in India. Stakeholder feedback has been invited on the draft norms. 

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