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RBI gives banks one more year to adopt Indian Accounting Standards

At today's monetary-policy, the RBI left repo rate unchanged at 6%

Press Trust of India  |  Mumbai 

Urjit Patel, Governor, RBI, M D, Patra, ED, RBI, N S Vishwanathan, Deputy Governors RBI BP Kanungo, Deputy Governors RBI and  Viral Acharya, Deputy Governors RBI during a press conference in Mumbai. Photo: Kamlesh Pednekar
Urjit Patel, Governor, RBI, M D, Patra, ED, RBI, N S Vishwanathan, Deputy Governors RBI BP Kanungo, Deputy Governors RBI and Viral Acharya, Deputy Governors RBI during a press conference in Mumbai. Photo: Kamlesh Pednekar

The on Thursday deferred the implementation of the (Ind AS) by one year as many banks are not prepared to migrate to the new accounting system.

The earlier deadline for banks to switch to the Ind AS was from April 1 2018.

"Ind AS was to be implemented from this year. As part of this, we've also been requiring banks to submit half-yearly returns based in Ind AS format. But our assessment is that many banks are still not prepared to move to Ind AS.

"So, we thought that we should defer this by one year and by when the preparedness and amendments to the schedule to the act are also there," deputy governor during the customary post-policy presser.

Explaining the rationale for the extension, the deputy governor said the format of the financial statements as prescribed in the Third Schedule of the Banking Regulation Act which is not amenable for reporting financial statements under Ind AS, and, therefore, we have requested government to amend the Schedule and that is under consideration.

He, however, said will continue to have the proforma of financial statements from banks to monitor the progress lenders are making towards migration to Ind-AS.

At today's monetary-policy, the left repo rate unchanged at 6 per cent.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, April 05 2018. 17:12 IST