The Reserve Bank of India (RBI) has constituted a Technical Committee to review the form of presentation of its Balance Sheet and Profit and Loss Account. The Committee will also review the style and content of the management commentaries on financial statements and notes to the accounts, and make recommendations to effect changes, if necessary, by appropriate legislative/regulatory modifications.
Several changes have been brought about over the years in the presentation and the explanatory notes to RBI accounts with a view to improving the disclosure, transparency and information content. The existing format of the Balance Sheet and Profit and Loss Account is being reviewed in order to keep pace with the changing times and meet the market expectations for bringing in more clarity and lucidity for the wider readership, while aligning with the best international practices.
The terms of reference, in brief, of the Committee are:
i) Whether the existing presentation of two separate Balance Sheets of Issue and Banking Departments needs to be merged into a single Balance Sheet of the RBI;
ii) Whether it is necessary to have separate Profit and Loss Accounts for the Issue and Banking Departments or whether the present form of a combined Profit and Loss Account will continue;
iii) Whether the disclosures presently made in the Balance Sheet and Profit and Loss Account and the notes to accounts are adequate or can be elaborated/ improved.
The Committee will comprise Shri Y. H. Malegam, Director on the Central Board of the RBI as Chairman. Ms Indira Rajaraman, Director on the Central Board of the RBI, Shri B. Mahapatra, Executive Director, RBI, Shri P. R. Ramesh, Chairman, Deloitte Haskins and Sells, and Shri V. Venkataramanan, Partner, KPMG, are the other Members. Shri S. Ganeshkumar, Chief General Manager, Department of Government and Bank Accounts, RBI is the Member-Secretary.
Comments/views of all interested stakeholders on the terms of reference of the Committee may please be e-mailed by January 10, 2013.
Chief General Manager
Press Release: 2012-2013/901