The Reserve Bank of India (RBI) issued the much-awaited Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024 on 27th February, 2024.
This article talks about the master direction issued by Reserve Bank of India(RBI) for filing of supervisory returns.
Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024 (“Directions”)
The Reserve Bank of India (RBI) issued the much-awaited Master Direction – Reserve Bank of India (Filing of Supervisory Returns) Directions – 2024 on 27th February, 2024.
The updated Master Direction offers a comprehensive framework to comprehend the objective of the returns and standardizes the timelines for their submission. The direction eliminates outdated instructions and integrates twenty existing instructions, including the Master Direction for Non-Banking Financial Companies. It establishes a single document to ensure compliance with the submission of all supervisory data.
The revised Regulatory structure for NBFCs shall comprise of four layers. Accordingly, the schedule of returns for NBFCs has been revised to reflect the applicability as per these four layers and the revised framework.
Applicability: This Direction shall apply to the following entities:
· All Commercial Banks excluding Regional Rural Banks. Commercial Banks include Public Sector Banks (PSBs), Private Sector Banks (PVBs), Small Finance Banks (SFBs), Payment Banks (PBs), Local Area Banks (LABs) and Foreign Banks (FBs).
All Primary (Urban) Co-operative Banks.
S Select All India Financial Institutions (Exim Bank, NABARD, NHB, SIDBI and NABFID)
All Non-Banking Financial Companies [excluding Housing Finance Companies (HFCs)] and all Asset Reconstruction Companies (ARCs).
Base Layer NBFC:
The Base Layer shall comprise of (a) non-deposit taking NBFCs below the asset size of ₹1,000 crore and (b) NBFCs undertaking the following activities – (i) NBFC-Peer to Peer Lending Platform (NBFC-P2P), (ii) NBFC-Account Aggregator (NBFC-AA), (iii) Non-Operative Financial Holding Company (NOFHC) and (iv) NBFC not availing public funds and not having any customer interface.
Middle Layer NBFC:
The Middle Layer shall consist of (a) all deposit taking NBFCs (NBFCs-D), irrespective of asset size, (b) non-deposit taking NBFCs with asset size of ₹1,000 crore and above and (c) NBFCs undertaking the following activities (i) Standalone Primary Dealer (SPD), (ii) Infrastructure Debt Fund-Non-Banking Financial Company (IDF-NBFC), (iii) Core Investment Company (CIC), (iv) Housing Finance Company (HFC) and (v) Non-Banking Financial Company-Infrastructure Finance Company (NBFC-IFC).
Upper Layer NBFC:
The Upper Layer shall comprise of those NBFCs which are specifically identified by the Reserve Bank as warranting enhanced regulatory requirement based on a set of parameters and scoring methodology The top ten eligible NBFCs in terms of their asset size shall always reside in the upper layer, irrespective of any other factor. The quantitative and qualitative parameters shall have weightage of 70 percent and 30 percent respectively. Scoring methodology for identification of an NBFC as NBFCUL shall be based on the set of NBFCs fulfilling the following criteria:
(i) Top 50 NBFCs (excluding top ten NBFCs based on asset size, which automatically fall in the Upper Layer) based on their total exposure including credit equivalent of off-balance sheet exposure.
(ii) NBFCs designated as NBFC-UL in the previous year.
(iii) NBFCs added to the set by supervisors using supervisory judgment
Returns applicable for Upper/Middle Layer NBFCs:
|
Sl. No |
Name of Return |
Periodicity |
Reference date |
Existing Timelines |
Revised Timelines |
|
1. |
DNBS01-Important Financial Parameters |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
Within 15 days from the Reference Date |
Within 21 days from the Reference Date |
|
2. |
DNBS03- Important Prudential Parameters |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
Within 15 days from the Reference Date |
Within 21 days from the Reference Date |
|
3. |
DNBS04A- Short Term Dynamic Liquidity (STDL) |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
Within 15 days from the Reference Date |
Within 21 days from the Reference Date |
|
4. |
DNBS04B-Structural Liquidity & Interest Rate Sensitivity |
Monthly |
31st March/ 30th April/ 31st May/ 30th June/ 31st July/ 31st August/ 30th September/ 31st October/ 30th November/ 31st December/ 31st January/ 28th or 29th February as applicable |
Within 10 days from the Reference Date |
Within 15 days from the Reference Date |
|
5. |
DNBS08 – CRILC-Main (NBFCs) |
Monthly |
31st March/ 30th April/ 31st May/ 30th June/ 31st July/ 31st August/ 30th September/ 31st October/ 30th November/ 31st December/ 31st January/ 28th or 29th February as Applicable
|
Within 21 days from the Reference Date |
Within 15 days from the Reference Date |
|
Sl. No |
Name of Return |
Periodicity |
Reference date |
Existing Timelines |
Revised Timelines |
|
6. |
DNBS09-CRILC –Weekly Return on Defaulted Borrowers (RDB)- |
Weekly |
Friday of the Week |
— |
Friday of the Week |
|
7. |
DNBS10-Statutory Auditor Certificate (SAC) Return |
Yearly |
31st March |
One month from the date of finalisation of Balance Sheet. Not later than 31st December |
Within 5 working days from the date of signing of the Auditor’s report in terms of section 134 of the Companies Act, 2013, but not later than December 31st of same year, in any case. |
|
8. |
DNBS13 – Overseas Investment Details |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
Within 15 days from the Reference Date |
Within 21 days from the Reference Date
|
|
9. |
Form A Certificate |
Annual |
31st March |
— |
Within one month from the date of appointment of Statutory Central Auditor (SCA) / Statutory Auditor (SA). |
|
10. |
Financial Soundness Indicators (FSI) |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
— |
|
|
11. |
FMR – I (Report on Actual or Suspected Frauds) |
As and when |
As and when the fraud is detected |
— |
Within three weeks from the detection of fraud |
|
12. |
FMR – III (Update of Form FMR-I) |
As and when |
As and when any development occurs in FMR-1 details |
— |
Immediate. |
|
13. |
FMR – IV (Report on Dacoities / Robberies / Theft / Burglaries) |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
— |
Within 15 days from the Reference Date |
Returns applicable for Base Layer NBFCs:
|
Sl. No |
Name of Return |
Periodicity |
Reference date |
Existing Timelines |
Revised Timelines |
|
1. |
DNBS02 – Important Financial Parameters (NBFCs – BL) |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
Frequency – Annual Within 60 days from Reference Date |
Within 21 days from Reference Date |
|
2. |
DNBS04A- Short Term Dynamic Liquidity (STDL) |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
Within 15 days from the Reference Date |
Within 21 days from the Reference Date |
|
3. |
DNBS04B-Structural Liquidity & Interest Rate Sensitivity |
Monthly |
31st March/ 30th April/ 31st May/ 30th June/ 31st July/ 31st August/ 30th September/ 31st October/ 30th November/ 31st December/ 31st January/ 28th or 29th February as applicable |
Within 10 days from the Reference Date |
Within 15 days from the Reference Date |
|
4. |
DNBS08 – CRILC-Main (NBFCs) |
Monthly |
31st March/ 30th April/ 31st May/ 30th June/ 31st July/ 31st August/ 30th September/ 31st October/ 30th November/ 31st December/ 31st January/ 28th or 29th February as applicable |
Within 21 days from the Reference Date |
Within 15 days from the Reference Date |
|
5. |
DNBS09-CRILC –Weekly Return on Defaulted Borrowers (RDB)- |
Weekly |
Friday of the Week |
— |
Friday of the Week
|
|
6. |
DNBS10-Statutory Auditor Certificate (SAC) Return |
Yearly |
31st March |
One month from the date of finalisation of Balance Sheet. Not later than 31st December |
Within 5 working days from the date of signing of the Auditor’s report in terms of section 134 of the Companies Act, 2013, but not later than December 31st of same year, in any case. |
|
7. |
DNBS13 – Overseas Investment Details |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
Within 15 days from the Reference Date |
Within 21 days from the Reference Date
|
|
8. |
Form A Certificate |
Annual |
31st March |
— |
Within one month from the date of appointment of Statutory Central Auditor (SCA) / Statutory Auditor (SA). |
|
9. |
Financial Soundness Indicators (FSI) |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
— |
|
|
10. |
FMR – I (Report on Actual or Suspected Frauds) |
As and when |
As and when the fraud is detected |
— |
Within three weeks from the detection of fraud |
|
11. |
FMR – III (Update of Form FMR-I) |
As and when |
As and when any development occurs in FMR-1 details |
— |
Immediately |
|
12. |
FMR – IV (Report on Dacoities / Robberies / Theft / Burglaries) |
Quarterly |
31st March/ 30th June/ 30th September/ 31st December |
— |
Within 15 days from the Reference Date |