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RBI defers Ind-AS implementation

RBI defers Ind-AS The Reserve Bank of India said it is deferring the adoption of Ind-AS, or Indian Accounting Standards, by banks for a year, because banks are unprepared to migrate to the new system. According to N.S. Vishwanathan, deputy governor, the format of financial statements as prescribed under Schedule 3 of Banking Regulation Act is not amenable to reporting financial statements under Ind-AS and hence RBI has requested the government to amend it and that is under consideration. He said RBI’s assessment too shows that some of the banks are still not prepared to move into the new regime and for that RBI should defer this by one year with the preparedness and amendments of Schedule 3 take place. All commercial banks, barring regional rural banks, were required to implement the new accounting standards from 1 April 2018. Vishwanathan said RBI has been asking banks to submit half-yearly returns based in Ind-AS format, but an assessment showed that many banks are still not prepared to move to Ind-AS. A key change under the new rules was the need to provision for accounts based on expected loss, instead of when an account turns into a non-performing asset (NPA).

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