Mumbai: The Reserve Bank of India (RBI) on Tuesday proposed standardising capital adequacy disclosures across lenders, bringing unlisted and foreign banks in line with listed peers. Under the draft norms, banks will be required to use uniform reporting formats and units to improve comparability of Basel-related disclosures.Clearly defined templates covering key metrics, capital composition and risk-weighted assets will help analysts and depositors assess financial strength more easily and compare their performance.The revised framework will apply to all commercial banks, including foreign bank branches operating in India. The RBI has also proposed that all figures be reported in rupees crore. Banks must retain rows for disclosures even if not applicable, marking them accordingly to ensure consistency in presentation across institutions and over time.The draft guidelines introduce stronger accountability by requiring whole-time directors to attest to the accuracy of disclosures.Additionally, banks will need to maintain a dedicated section on their websites for regulatory disclosures and archive these for at least 10 years, enabling stakeholders to track performance across economic cycles.
RBI proposes same norms of disclosure for all banks
The Reserve Bank of India is proposing new rules for banks. These rules will standardize how banks report their capital strength. This applies to all banks, including foreign ones. The goal is to make it easier for people to understand and compare bank performance. Banks will need to use specific formats and report figures in rupees crore.
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