Panel To Study Introduction Of Consolidated Accounting

The Reserve Bank of India (RBI) has set up a multi-disciplinary working group to look into the introduction of consolidated accounting and quantitative techniques for banks groups.

The panel has been set up to undertake an aggregated supervision of bank groups. This is primarily due to international banks not closely monitoring their overseas subsidiaries and banks entering other areas of business. And the recommendations of the Basel committee too has prompted the RBI to constitute the seven-member panel.

It will examine the feasibility of introducing consolidated accounting for groups where banks are either their parents or subsidiaries. Furthermore, it will try to specify the scope and the methods to be followed while doing so.

It will also recommend introduction of any quantitative methods like group prudential norms to facilitate consolidated supervision. Besides, the group will also look into sequencing of consolidated accounting's introduction and will state the legislative amendments.

The group, headed by Vipin Malik, chartered accountant member, central board of directors, RBI, has K L Khetrapaul, chief general manager in-charge, department of banking supervision, RBI, P V Subba Rao, chief general manager, department of banking operations and development, RBI, B D Sumitra, CGM, SBI, G Sitharaman president, Institute of Chartered Accountants of India, Nagesh Pinge, joint general manager, ICICI, and Aditya Narain, deputy general manager, department of banking supervision, RBI, as members.