RBI defers implementation of Ind AS by one year
The Reserve Bank of India (RBI) on Thursday decided to defer implementation of Indian Accounting Standard (Ind AS) by one year for the banks.Scheduled commercial banks (SCBs), excluding regional rural banks (RRBs), were required to implement Ind AS from April 1, 2018.
Necessary legislative amendments – to make the format of financial statements, prescribed in the Third Schedule to Banking Regulation Act 1949, compatible with accounts under Ind AS – are still under consideration of the government,” the apex bank said in a statement.In view of this, as also the level of preparedness of many banks, it has been decided to defer implementation of Ind AS by one year by when the necessary legislative changes are expected, it said. By that time, the necessary legislative changes are expected, it said.
In a note in January, India Ratings estimates had pointed out that SCBs may need up to Rs 89,000 crore towards incremental provisioning for advances while transiting to the Ind AS 109 regime. Of this, public sector Banks (PSBs) were required Rs 63,100 crore, which were equivalent to an equity write down of 1.10 per cent of the banks’ risk weighted assets and 11.5 per cent of net worth at end-March 2017.
The Economic Times, New Delhi, 06th April 2018