On June 23, 2016, the Reserve Bank of India (RBI) issued several important notifications including the review of reporting requirements under Basel III, the implementation of Indian Accounting Standards (IND AS), and allowing startups to open foreign currency accounts abroad. Additionally, it permitted resident exporters and importers to write options against their contracted exposures and introduced a uniform format for statutory auditor certificates for non-banking financial companies. Lastly, the RBI issued master direction for financial statements of all India financial institutions effective from the quarter ended December 2016.

1. June 23, 2016
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CORPORATE
RBI
1. Review of Reporting Requirements
under Basel III Capital Regulations
Reserve Bank of India (RBI) vide
Notification RBI/2015-16/428
DBR.BP.BC.No.105/21.06.001/2015-16
dated 23rd June, 2016 reviewed the
reporting requirements under Basel III
Capital Regulations.
In terms of the extant instructions
contained in the Master Circular
DBR.No.BP.BC.1/21.06.201/2015-16
dated July 1, 2015 on Basel III Capital
Regulations, banks are required to
submit a report to the Chief General
Manager-In-Charge, Department of
Banking Regulation, Reserve Bank of
India, Mumbai, giving the details of the
debt raised, including the terms of the
issue with a copy of the offer document
soon after the issue is completed. he
above measures were intended to
ensure that the debt/capital raised by
banks in India are in compliance with
Basel III Capital Regulations. However, as
more than three years have since been
elapsed from the date of
implementation of Basel III Capital
Regulations in India, it is expected that
the systems and processes in this regard
have stabilized.
Accordingly, on a review of the extant
instructions, it has been decided that
banks need not submit a copy of the
offer document to Reserve Bank of India,
as hitherto. Banks shall however, report
to the Principal Chief General Manager,
Department of Banking Regulation,
Reserve Bank of India, Mumbai, the
details of the debt raised as per the
format prescribed below duly certified
by the compliance officer of the bank.
The compliance with the Basel III Capital
regulations will continue to be examined
by our Department of Banking
Supervision, in course of the supervisory
evaluation.
https://www.rbi.org.in/Scripts/Notific
ationUser.aspx?Id=10455&Mode=0
2. Implementation of Indian Accounting
Standards (Ind AS)
Reserve Bank of India (RBI) vide
Notification No. RBI/2015-16/429
DBR.BP.BC.No.106/21.07.001/2015-16
dated 23rd June, 2016 has directed the

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banks to submit Proforma Ind AS
Financial Statements, for the half year
ended September 30, 2016 latest by
November 30, 2016 to the Principal Chief
General Manager, Department of
Banking Regulation, Central Office,
Reserve Bank of India, Mumbai.
The Proforma Ind AS Financial
Statements shall include the following:-
(a) Balance Sheet including Statement of
Changes in Equity
(b) Profit and Loss Account
(c) Notes
https://www.rbi.org.in/Scripts/Notific
ationUser.aspx?Id=10456&Mode=0
3. RBI Permits Start-Ups to Open Currency
Account Abroad
Reserve Bank of India (RBI) vide Circular
No. 77 [(2)/10(R)] dated 23rd June, 2016
has allowed startups with an overseas
subsidiary to open foreign currency
accounts abroad to credit foreign
exchange earnings from exports and
sales made by them.
The balances held in such accounts, to
the extent they represent exports from
India, shall be repatriated to India within
the period prescribed for realization of
exports, in Foreign Exchange
Management (Export of Goods and
Services) Regulations, 2015 dated
January 12, 2016, as amended from time
to time.
https://www.rbi.org.in/Scripts/Notific
ationUser.aspx?Id=10457&Mode=0
4. Permitting writing of options against
contracted exposures by Indian
Residents
Reserve Bank of India (RBI) vide Circular
No. 78 dated 23rd June, 2016 has given
permission to resident exporters and
importers of goods and services to write
(sell) standalone plain vanilla European
call and put option contracts against
their contracted exposure, i.e. covered
call and covered put respectively, to any
AD Cat-I bank in India subject to
operational guidelines.
https://www.rbi.org.in/Scripts/Notific
ationUser.aspx?Id=10458&Mode=0
5. Format of Statutory Auditors’
Certificate (SAC) to be submitted by
NBFCs
Reserve Bank of India (RBI) vide
Notification No. RBI/2015-16/433
DNBS (PPD) CC.No./04/66.14.001/2015-
16 dated 23rd June, 2016 has introduced
a uniform format of Statutory Auditor
Certificate (SAC) to be submitted by all
Non Banking Financial Companies
(NBFCs) every year to the effect that they

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continue to engage in the business of
NBFI requiring it to hold a CoR under
Section 45-IA of the RBI Act.
The NBFC would need to fill in the
information, as applicable, in COSMOS.
Thereafter, the SAC needs to be scanned
and uploaded in COSMOS
https://cosmos.rbi.org.in under the
menu Upload Returns > Statutory
Auditors Certificate.
https://www.rbi.org.in/Scripts/Notific
ationUser.aspx?Id=10460&Mode=0
6. Master Direction - Reserve Bank of India
(Financial Statements of All India
Financial Institutions - Presentation,
Disclosure and Reporting) Directions,
2016
Reserve Bank of India (RBI) vide
Notification No. RBI/DBR/2015-16/26
Master Direction
DBR.FID.No.108/01.02.000/2015-16
dated 23rd June, 2016 has issued the
master direction for All India Financial
Institutions (AIFIs) regulated by Reserve
Bank of India viz. EXIM Bank, NABARD,
NHB and SIDBI with effect from the
quarter ended December 2016.
These Directions shall be called the
Reserve Bank of India (Financial
Statements of All India Financial
Institutions - Presentation, Disclosures
and Reporting) Directions, 2016.
https://www.rbi.org.in/Scripts/Notific
ationUser.aspx?Id=10461&Mode=0
For any query:
Contact – Sunaina Jhingan
Email – Sunaina.jhingan@acquisory.com