RBI Tweaks Norms to Standardize Filing of Supervisory Returns by Banks, NBFCs

The Reserve Bank of India (RBI) has introduced new directives aimed at streamlining the filing of supervisory returns by various supervised entities, including banks and NBFCs. This move, driven by the Regulations Review Authority and an Internal Working Group of the RBI, seeks to simplify compliance requirements and reduce the burden on regulated entities.

The RBI's decision to consolidate all relevant instructions into a single Master Direction underscores its commitment to enhancing clarity, brevity, and harmonization in regulatory processes. With the issuance of 'Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024', commercial banks, Urban Co-operative Banks, All India Financial Institutions, NBFCs, and Asset Reconstruction Companies will need to adhere to standardized timelines for filing returns.

While the new norms exclude regional rural banks and housing finance companies, they introduce stricter timelines for reporting. For instance, PSBs are now required to submit half-yearly and quarterly reviews of accounts within 21 days from the receipt of the statutory central auditor (SCA) report. Additionally, lenders must submit interest rate sensitivity returns within 15 days for all months, compared to the previous quarterly submission requirement.

Non-compliance with these directives may lead to penalties or fines under relevant banking regulations, highlighting the importance of adherence to regulatory guidelines.

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