5 Types of Regulatory Reporting for Banks

Updated On : Sep 2023

In 2023, the Indian banking industry continues to operate under the watchful eye of the Reserve Bank of India (RBI), abiding by a plethora of guidelines and regulations. These rules are designed to ensure the stability and transparency of the banking system, and they require banks to adhere to various reporting requirements as part of their regulatory obligations.

Regulatory reporting is a fundamental aspect of banking operations. It involves the meticulous preparation and timely submission of periodic reports to regulatory authorities, which are instrumental in monitoring and supervising the functioning of banks.
These reports serve the dual purpose of ensuring the safe and sound operation of banks and providing regulators with the essential data to evaluate the overall health of the banking system.

The RBI plays a central role in overseing these reporting processes by issuing comprehensive guidelines covering various aspects, including capital adequacy, asset quality, liquidity, and profitability.

Banks are mandated to submit these reports to the RBI in prescribed formats and within stipulated timelines. Compliance with these RBI guidelines for regulatory reporting is vital for maintaining the stability and integrity of the Indian banking system.

Compliance with these regulatory reporting specified below is mandatory for all banks operating in India:

CRILC Reporting for Stressed Assets

CRILC reporting, focused on stressed assets, stands as one of the critical reporting requirements for Indian banks. The Central Repository of Information on Large Credits (CRILC), established by the RBI, functions as a repository for data on large credit exposures of banks.

Under CRILC reporting, banks must furnish information about borrowers with aggregate exposures of INR 5 crore or more, categorizing them as standard, sub-standard, doubtful, or loss assets.

The aim is to facilitate early identification and timely resolution of stressed assets within the banking system. Strict quarterly reporting deadlines are set by the RBI, with non-compliance leading to penalties. Compliance with CRILC reporting is paramount for banks to maintain their regulatory standing and avoid penalties.

Filing of Suspicious Transaction Reports (STR)

Suspicious Transaction Reports (STRs) are a critical regulatory reporting requirement for Indian banks. These reports are filed when transactions are suspected to be related to illegal activities such as terrorism financing or money laundering.

Banks are obligated to maintain monitoring systems to identify suspicious transactions and promptly report them to the appropriate regulatory authorities. Timely and accurate filing of STRs is essential to compliance and upholding the financial system's integrity.

Banks must invest in staff training and robust systems and controls to facilitate the timely filing of these reports.

SLR and CRR Reporting

Indian banks are also required to engage in SLR (Statutory Liquidity Ratio) and CRR (Cash Reserve Ratio) reporting. SLR represents the percentage of deposits that banks must maintain in the form of liquid assets, while CRR signifies the percentage of deposits held with the RBI as a reserve against deposits.

These ratios are established by the RBI and serve as indicators of a bank's ability to met its cash obligations. Banks must regularly report their compliance with these ratios to the RBI, ensuring that they maintain sufficient liquidity to met obligations and minimize the risk of bank failures.

Co-Origination Reporting for NBFCs

Co-origination of loans has become a popular method for Non-Banking Financial Companies (NBFCs) to extend credit to underserved segments of the Indian population. Consequently, the RBI has introduced regulatory reporting requirements for co-origination transactions betwen NBFCs, and banks.

NBFCs are mandated to report co-origination transactions with banks to the RBI on a monthly basis. This reporting framework aims to enhance transparency and ensure that co-origination transactions are conducted fairly and in compliance with regulations. Therefore, NBFCs must establish robust reporting systems to met these regulatory requirements.

Asset Classification Reporting

Asset classification reporting is a crucial regulatory requirement for Indian banks. It involves categorizing assets based on their credit quality and risk level. Indian banks must adhere to the asset classification guidelines issued by the RBI, reporting regularly to the central bank.

These guidelines specify criteria for classifying assets into categories such as standard assets, sub-standard assets, doubtful assets, and loss assets. Asset classification reporting enables the RBI to monitor the quality of assets held by banks and take timely corrective measures to mitigate risks.

Banks are also required to disclose their asset classification status in their financial statements and annual reports, enhancing transparency and bolstering investor confidence.

In conclusion, regulatory reporting remains a cornerstone of banking operations in India in 2023. Banks must ensure they have the necessary systems and processes in place to accurately met these reporting requirements in a timely manner.

By doing so, they can maintain compliance with regulatory guidelines and build trust with stakeholders, including customers, investors, and regulatory bodies.

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