Wed, Feb 22, 2017 | updated 09:22 AM IST

Reserve Bank expecting only first cut reporting from banks, says ED, RBI

Updated: Oct 07, 2016 13:54 IST

New Delhi [India], Oct 7 (ANI): The Reserve Bank of India (RBI) is expecting a rough, first cut reporting from banks vis-a-vis proforma Ind AS (Indian Accounting Standards) financial statements for the half year ending September by November 30 to ascertain the difficulties and problems faced by banks as part of transition to International Financial Reporting Standards from April 2018, a top RBI official said at an ASSOCHAM event held in New Delhi today.

"I know it will be very difficult to expect any kind of accuracy in that reporting, what I am hoping is it will throw up difficulties, problems which we will work on," said Sudarshan Sen, executive director (ED), RBI while inaugurating an ASSOCHAM seminar.

"We are not going to hold a sword to the banks and say that this reporting has to be absolutely perfect, on the contrary it will be a discovery and learning for us and banks which is why we have asked for this proforma reporting from September half year onwards," said Sen.

He also said that capacity building both in terms of human as well as IT (information technology) resources is the need of the hour for banks to follow Ind AS converged with International Financial Reporting Standards (IFRS) from April 2018.

"It is imperative for the human resources in banks to meet the challenges of implementing Indian Accounting Standards (Ind AS), another very big area is that huge modifications will be required to IT systems," he added.

He said that the basic Core Banking Solution (CBS) which exists in banks is a barebones nominal value recording framework, but to move the data there into the kind of financial reporting and the measurement which is required under the Ind-AS will require lot of application programming interfaces, lot of middleware will have to be developed which will basically convert all the raw numbers into numbers which are compliant in Ind-AS.

"But this is again a huge challenge and given this especially in public sector banks (PSBs) there are processes involved in upgrading software and hardware, it takes time, there are approvals required and there are budgets to be made, it is a big challenge as to how they would be able to meet the timelines given by us," he said.

He added that banks need to develop and strengthen their data capture systems to enable the assessment of impairment.

"Now we will be going to loss modeling, we will be looking at data based estimation of future losses and the additional problem is that we do not have a lot of work actually done internationally for us to draw from that so we will be inventing to a large extent domestically," said the RBI executive director.

Highlighting that Ind AS provides for extensive disclosures in respect of financial instruments and their attendant risks and also fair value measurements as well as consolidation requirements, he said "Banks will have to put in very robust systems in place and make lot of efforts and possibly expenses to meet the requirements in this regard."

He also said that RBI will have to very carefully review various regulations that are there and bring them in tune with the Ind-AS.

"Where we have to deviate, we will consciously deviate and where we have to join we will consciously join, but a lot of work is there," said Sen.

He further said that formats of balance sheets and the profit and loss account

under the Banking Regulation Act will change under the Ind-AS landscape. "All this is being looked at, all reporting formats will undergo a great change." (ANI)

New Delhi, [India], Feb. 22 (ANI): A report on the vibrancy of the startup ecosystem in the UK and its lessons for India's developing startup scene was launched on Tuesday.

Full Story >>

New Delhi, [India], Feb. 22 (ANI-NewsVoir): Genesis Foundation in association with Fitbit and powered by Monster.com announced the sixth edition of its annual flagship musical event, Kasauli Rhythm and Blues Festival.

Full Story >>

New Delhi, [India], Feb. 22 (ANI-BusinessWire India): Tammy Trade, India's fastest growing B2B e-marketplace, is off to a flying start since its launch in October 2016. In the agro-commodities space, Tammy Trade has already facilitated bulk orders for paddy, wheat, rice, soya and maize to name a few, with sales volumes ranging from 200 to 2600 tons.

Full Story >>

Kutchina associates with Freedomscape

Updated: Feb 22, 2017 08:16 IST

New Delhi, [India], Feb. 22 (ANI-NewsVoir): Kutchina, one of the leading manufacturers and retailers of kitchen appliances and modular kitchen in the country, associated itself with Freedomscape, presented by Indian Museum, a cultural program which witnessed participation of differently abled children, in Kolkata.

Full Story >>

New Delhi, [India], Feb. 22 (ANI): Verizon Enterprise Solutions has partnered with Ericsson to provide enabling technologies for Verizon Virtualised Managed Network Services offerings that will be rolled out globally.

Full Story >>

HTC launches U Series of smartphones

Updated: Feb 22, 2017 07:48 IST

New Delhi, [India], Feb. 22 (ANI-NewsVoir): HTC Corporation, a leading innovator in mobile and virtual reality technology, unveiled the HTC U Ultra and the HTC U Play smartphones in the Indian market, on Tuesday.

Full Story >>

New Delhi [India], Feb.21 (ANI): Infomark Korea, a company with a global reputation for manufacturing 3G/4G mobile communication devices as well as wearable products is finalising a partnership with BSNL for production of WiMax mobile routers in the Kerala telecom circle.

Full Story >>

New Delhi [India], Feb. 21 (ANI):The Ministry of External Affairs (MEA) has asked all chairs and missions to to promote Ayush and Ayurveda, said Minister of State for External Affairs, General V.K. Singh (Retd), at an ASSOCHAM event held in New Delhi today.

Full Story >>

New Delhi [India], Feb.21 (ANI):Louis Taylor, Chief Executive Officer of UK Export Finance (UKEF), is visiting India from 20-23 February. UKEF, the UK's Export Credit Agency, has up to £1 billion in capacity to provide finance to support Indian buyers of British goods, services and intangibles, with support available in Indian Rupees.

Full Story >>

New Delhi [India], Feb. 21 (ANI-BusinessWire India): Herbalife, a global nutrition company, announced its partnership with Special Olympics Bharat (SOB) to support and encourage athletes with intellectual disabilities in India.

Full Story >>

New Delhi [India], Feb. 21 (ANI): After his appointment as the Chairman earlier today, Natarajan Chandrasekaran chaired his first Board Meeting of Tata Sons Limited.

Full Story >>

New Delhi [India], Feb 21 (ANI): Reliance Industries chairman and managing director Mukesh Ambani on Tuesday announced that Reliance Jio, which has achieved unprecedented level of acceptance in the world, has crossed a subscriber base of 100million in record time.

Full Story >>

New Delhi [India], Feb. 21 (ANI-BusinessWireIndia): HCL Infosystems, one of India's Premier IT Services, Distribution and Digital Solutions Company, showcased Cloud and Internet-of-Things (IoT) based solutions at the Future Decoded, Microsoft India's flagship conference, being held in Mumbai on February 21 and 22, 2017.

Full Story >>

New Delhi [India], Feb 21 (ANI): Addressing the media on the progress in making Digital Payments a mass movement in India, CEO Niti Aayog Amitabh Kant said that there are nearly 10 lakh citizens who have so far got reward money of over Rs. 153.5 crore for embracing digital payments.

Full Story >>

New Delhi [India], Feb. 21 (ANI): In the wake of the ongoing BMC Polls in Mumbai, Niranjan Hiranandani, CMD, Hiranandani Communities has encouraged Mumbaikars to exercise their voting rights and feel proud of their city.

Full Story >>

New Delhi [India], Feb. 21 (ANI): India's first healthcare education and training company, Vivo Healthcare is eyeing major expansion across India, South Asia and the Middle East, following fresh strategic funding from Netherlands-based ICCO Investments.

Full Story >>

New Delhi [India], Feb 21 (ANI-BusinessWireIndia): Eminent educationist and psychologist has been bestowed the BBC Knowledge Award for Outstanding Contribution to education at the World Education Awards at Taj Lands End in Bandra by the Minister of Education of Malaysia on 18th February for his mass movement to reduce dropouts and girl education.

Full Story >>

New Delhi [India], Feb. 21 (ANI): Siemens Limited and Siemens Rail Automation Ltd. S.A.U Spain have jointly won an order worth Rs. 287 crore to supply state-of-the-art signaling technology for the first two metro lines of the Nagpur Metro, the North-South and the East-West Corridors.

Full Story >>

New Delhi [India], Feb 21 (ANI-NewsVoir): Samsung, Apple and HTC have emerged as the most successful mobile brands in the first decade of smartphones in India, according to the Mobile Industry Consumer Insight (MICI) Report by CyberMedia (CMR) Research.

Full Story >>

New Delhi [India], Feb 21 (ANI): To commemorate the 25th year of the ASEAN India relations, TEPC (Telecom Equipment and Services Export Promotion Council) organized an inter-ministerial meeting between telecom ministers of ASEAN countries and India in New Delhi today.

Full Story >>