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Corporate Laws Central Ministry of Finance Reserve Bank of India Act, 1934

Updation to Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021: Presentation of unclaimed liabilities transferred to Depositor Education and Awareness (DEA) Fund

25-Oct-2023 | RBI/2023-2024/71 DOR.ACC.47/21.04.018/2023-24

The Reserve Bank of India (RBI) issued a notification updating Reserve Bank of India (Financial Statements - Presentation and Disclosures) Directions, 2021. By virtue of this notification The Reserve Bank of India (RBI) has issued a directive that addresses the presentation of unclaimed liabilities transferred to the Depositor Education and Awareness (DEA) Fund. T The key points of this directive and its implications:- 1. The RBI directive focuses on the presentation of these unclaimed liabilities in the financial statements of banks. Specifically, the Notes and Instructions for compilation require commercial banks to present these unclaimed liabilities under Schedule 12 Contingent Liabilities Other items for which the bank is contingently liable. 2. To maintain consistency in financial statement presentation, the RBI advises all co-operative banks to present unclaimed liabilities transferred to the DEA Fund under Contingent Liabilities Others. 3. In addition to the presentation aspect, banks are mandated to include specific disclosures in the notes to the accounts of their financial statements. These disclosures should clarify that the balances of the amount transferred to the DEA Fund fall under Schedule 12 Contingent Liabilities Other items for which the bank is contingently liable? or Contingent Liabilities Others, as applicable. 4. These instructions are applicable to all commercial and cooperative banks for the preparation of financial statements for the financial year ending on March 31, 2024, and beyond.

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