The central bank’s clarification comes in response to the queries and suggestions from banks and Indian Banks’ Association on certain aspects of disclosures in the notes to accounts to the financial statements.
Banks had sought the RBI’s clarification on whether market value of repo and reverse repo transactions would better reflect the financials of banks instead of face value.
Similarly, the RBI said that it had received queries from banks on the classification in the balance sheet, of margin money received in the form of deposits, where lien is marked by banks in the ordinary course of business.
For this query, the central bank said that lien marked deposits will continue to be classified under a specific head, which is Schedule 3: Deposits with suitable disclosures.
The RBI said that these instructions are applicable to all commercial and cooperative banks for preparation of financial statements for the financial year ending March 31, 2025 and onwards.
