S.

No Data Elements
Banking Statistics I (Harmonised Definitions)
Assets
1 Cash in India/ Cash in Hand
2 Deemed Cash
3 Balances with banks
4 Bank Credit
5 Gross Loans and Advances
6 Net Loans and Advances
7 Cash Credit
8 Overdraft
9 Term Loans
10 Demand Loans
11 Bills Purchased and Discounted
12 Advances Fully Secured by Tangible Assets

13 Unsecured Loans
14 Advances Covered by Bank/ Government
15 Guarantees
Clean Loans/Advances
16 Non-performing Assets

17 Non-Earning Assets
18 Syndicated Loans
19 Technical / Prudential Write-off
20 Gross Investments

21 Net Investments
22 Non-performing Investment (NPI)

23 Leased Assets
24 Interest Receivable/ Accrued
25 Tax Deducted at Source (TDS)
26 Advance tax paid and TDS
27 Inter-office Adjustments Assets
Liabilities
1 Equity/ Ordinary Share
2 Local Capital Funds
3 Preference Share Capital
4 Paid-up Capital
5 Paid-up Equity Capital
6 Reserves and Surplus
7 Capital and Reserves
8 Statutory Reserves
9 Revaluation Reserve
10 Capital Reserves
11 Share Premium
12 Revenue Reserves
13 Investment Reserve/ Investment
Depreciation Reserves

14 Unallocated Surplus
15 Net Worth
16 Free Reserve
17 Borrowings
18 Refinancing
19 Inter-bank Borrowings

20 Commercial Paper
21 Secured Borrowings
22 Deposits
23 Business in India
24 Inter-bank Deposits
25 Customer Deposits
26 Current Account
27 Current Deposits
28 Savings Deposits

29 Term Deposits
30 Demand Deposits

31 Time Deposits
32 Certificates of Deposits
33 Margin Deposits
34 Bulk Deposit
35 Floating Rate Deposits
36 Bills Payable
37 Inter-office Adjustments Liabilities
38 Interest Payable/ Interest Accrued Payable
39 Provision
Provisions/ Provisions Held
40 General Provision
41 Specific Provision
42 Floating Provision
43 Counter Cyclical Provisioning Buffer
Off-Balance Sheet Items
1 Claims not Acknowledged as Debts
2 Bank Guarantee
3 Letter of Credit (LC)
4 Acceptances Endorsements and other
5 Obligations
Committed Lines of Credit
6 Bills Rediscounted DUPN (Derivative Usance
7 Promissory Note) of Outstanding Forward
Liability on Account
8 Foreign
Current Exchange Contracts
credit exposure
9 Potential Future Credit Exposure
10 Credit Equivalent Amount

11 Current Exposure Method

12 Contingent Credit Exposures
13 Bills for collection
14 PV01/ Price value basis point
Profit and Loss Account
1 Interest earned/ interest income
2 Income from off balance sheet operations
3 Other operating income
4 Non-operating Income
5 Recovery from written off accounts
6 Operating expenses
7 Interest expenses/ expended
8 Write-off
9 Net interest income
10 Return on assets
Miscellaneous
1-12 Capital/ Fixed Assets/ Lease/ Financial Lease/
13 Operating
Consumer Lease/
Credit Advance Tax Paid/
Goodwill/ Goodwill on Consolidation/
14 Personal
Intangibleloans
Assets/ Deferred Tax Assets/
15 Funded Credit
16 Weighted Average Lending Rate
17 Pre-shipment Credit
18 Take-out Finance/ Conditional Take-out
19 Finance
Unsecured Guarantees
20 Slippage
21 Standard Advances
22 Substandard Advances
23 Doubtful Advances
24 Restructured Accounts
25 Restructured Standard Advances
26 Mortgage-backed Security
27 Treasury Bills
28 Shifted Investments
29 Equities Participations
30 Securities Held for Trade (HFT), Available for
Sale (AFS), Held to Maturity (HTM)
31 Adjusted Net Bank Credit (ANBC)

32 Inside Liabilities
33 Outside Liabilities
34 Risk Sensitive Liabilities
35 Assigned Capital
36 Perpetual Non-Cumulative Preference Shares
37 Disclosed Reserve
38 Regulatory Capital
39 Capital Conservation Buffer (CCB)
40 Horizontal Disallowance
41 Vertical Disallowance
42 Collateralised Borrowing and Lending
43 Obligation
Lower Tier (CBLO)
II Bonds
44 Upper Tier II Bonds
45 Hybrid Capital
46 Securitised Debt Instruments
47 Redeemable Debt Instruments
48 Subordinated Debt
49 Long-term Time Deposit
50 Core Deposits
51 Unclaimed Deposits
52 Exchange Earners Foreign Currency Account/
53 Deposits (EEFC)
Risk Provisions
54 Para-banking Activities
55 Offshore Banking Units
56 Liability on Partly Paid-up Shares
57 Forward Deposits
58 Non-funded Commitments
59 Non-fund Based Advances
60 Short-term Facilities by Bank
61 Revolving Underwriting Facilities
62 Formal Standby Facilities and Credit Lines
63 Gross Exposure
64 Net Funded Exposure
65 Real Estate Exposures
66 Securitisation Exposures
67 Re-securitisation Exposures
68 Non-market Related Exposure
69 Market Related Exposure
70 Credit Risk
71 Credit Event Payments
72 Adjusted Value of Credit Risk Mitigant
73 Risk Adjusted Value
74 Risk Weighted Assets
75 Credit Default Swap (CDS) Transaction
76 Forex Buy Sell Swaps
77 Forex Sell Buy Swaps
78 Foreign Currency Rupee Swaps
79 Open Foreign Exchange Position Limit Capital
80 Charge
Credit Conversion Factor
81 Market Risk
82 Gross Mark to Market Value (Negative/
83 Positive)
Marked to Market Positions
84 Haircut Adjustment
85 Gap Limit
86 Cumulative Gap
87 Net gap
88 Maximum Aggregate Gap Limit
89 Operational Risk
90 Extraordinary Items
91 Hurdle Rate
92 Extraordinary Loss/ Expenses/ Charges
93 Diluted Earnings
94 Basic Earnings Per Share
95 Beta Factor
Banking Statistics II (Including Financial Inclusion)
1 Benchmark Prime Lending Rate (BPLR)
2 External benchmark rate
3 Marginal Cost of Funds based Lending Rate
4 (MCLR)
Assets with Banking System
5 Post-shipment Export Credit
 6 Net Demand and Time Liabilities (NDTL)
7 Other Approved Securities
8 Statutory Liquidity Ratio (SLR) assets
9 Statutory Liquidity Ratio (SLR) Securities
10 Unencumbered Approved Securities
11 Wilful default
12 Overdue status
13 Loss Assets
14 Securities Financing Transactions (SFTs)
15 Central counterparty(CCP)
16 Qualifying central counterparty (QCCP)
17 Leverage Ratio
18 Capital adequacy
19 Off-Balance Sheet exposures
20 Outstanding Exposure at Default (EAD)
21 Netting Set
22 Hedging Set
23 Current Exposure
24 Open Position
25 Nostro accounts/ Nostro Balance
26 Value at risk (VAR)
27 Counterparty Credit Risk
28 Average Yield on Interest Earning Assets
29 Average Cost of Funds
30 Agriculture Credit (Priority Sector)
31 Agriculture Infrastructure (Priority sector)
32 Ancillary Services (Priority Sector)
33 Education (Priority Sector)
34 Export Credit (Priority Sector)
35 Farm Credit (Priority Sector)
36 Housing (Priority Sector)
37 Kisan Credit Card (KCC) Loan
38 Micro Enterprises
39 Small Enterprises
40 Medium Enterprises
41 Others' Category under priority Sector
42 Priority Sector Lending Certificate (PSLC)
43 Priority Sector Lending Certificate (PSLC)-
44 Agriculture
Priority Sector Lending Certificate (PSLC)-
45 General
Priority Sector Lending Certificate (PSLC)-
Micro Enterprises
46 Priority Sector Lending Certificate (PSLC)-
47 Small Farmer
Renewable (SF)/Marginal
Energy Farmer (MF)
(Priority Sector)
48 Small & Marginal Farmers (Priority
49 Sector)
Social Infrastructure (Priority Sector)
50 Weaker Sections (Priority Sector)
51 Non-Financial Corporations
52 Government Non-Financial Corporations
53 Non-Government Non-Financial Corporations
External Sector
1 External Commercial Borrowings
2 External Commercial Lending
3 Foreign Currency Convertible Bonds
4 (FCCBs)
Foreign Currency Exchangeable Bonds
5 (FCEBs)
Trade Credit
6 External Commercial Borrowing (ECB)
7 liability-Equity ratio
All-in-cost (for External Commercial
8 Borrowing/Trade
Benchmark Credit)
rate (for External Commercial
9 Borrowing/Trade
Designated Credit)Dealer (AD)
Authorised
10 Category I Bank
Foreign Equity Holder
11 Convertible Note
12 Depository Receipt
13 Foreign Portfolio Investment
14 Foreign Direct Investment (FDI)
15 Indian Depository Receipts (IDRs)
16 Investment Vehicle
17 Sectoral cap (as per FDI policy)
18 Foreign Venture Capital Investor (FVCI)
19 Non-Debt Instruments
Financial Markets
1 Primary Dealer
2 Standalone Primary Dealer
3 Forex swap
4 Money Market Instruments (MMI)
5 Repurchase agreement (repo)
6 Reverse Repurchase agreement (reverse
7 repo)
Call, Notice and Term Money
8 Convertible Bond
9 Option
10 Debentures
11 Derivatives
12 Modified Duration
13 Non-Convertible Debentures (NCDs)
Consumer Education and Protection
1 Complaint (applicable to Return on
2 Complaints submitted
Award (applicable by commercial
to Return on
banks on customer
Complaints complaints)
submitted by commercial
3 Appeal (applicable to Return on
banks on customer
Complaints complaints)
submitted by commercial
4 Appellate Authority (applicable to Return
banks
on on customer
Complaints complaints)
submitted by commercial
5 Non-Bank System Participant
banks on customer complaints)
6 Internal Ombudsman (Banks)
7 Internal Ombudsman (NBFCs)
8 Internal Ombudsman (Non-Bank System
9 Participants)
Internal Ombudsman (Credit Information
Companies) Payment Systems
1 Prepaid Payment Instruments (PPIs)
2 Closed System Pre-paid Payment
3 Instruments
Full Know Your Customer (KYC) Pre-paid
4 Payment Instruments
Small Prepaid Payment Instruments
5 Credit Card
6 Debit Card
7 Merchants
 Definitions
Banking Statistics I (Harmonised Definitions)

Consist of (i) total amount of rupee notes and coins held by bank branches / ATMs / Cash deposit machines maintained by banks in India, including transit cash on bank’s books
as also cash
Consists with
of (a) Business
cash correspondents
deposit/balances (BCs), but bank
by a scheduled excluding cash, banks
(including whereincorporated
physical possession
outsideisIndia)/
with outsourced
non-scheduledvendors/BCs,
bank withwhich is not replenished
the Reserve Bank, in excessin bank’s ATM and/or
of required CRR
balances, (b) securities deposited with the Reserve Bank, to the extent unencumbered, by a bank incorporated outside India and (c) Net balances
Balances of banks in their (a) current account/s and (b) other deposit account/s maintained with other banks in India (including cooperative banks) / outside India as per in current accounts withbanks’
other
own books. Balances with banks outside India includes debit balances in Nostro accounts, balances held by foreign branches with banks outside
Bank Credit is synonymous with ‘Gross loans and Advances’ and includes all types of credit facilities such as cash credit, overdrafts, demand loans, term loans, bills discounted/ India as well as balances held
purchased and factored
All outstanding loans andreceivables.
advances asIt indicated
includes money
under thelentdefinition
by the bank to its
above ofborrowers/
‘Bank Credit’. customers,
These areinterest
gross ofaccrued and due
all provisions onnetting
and such monies
items aslent, debit balances
specified under thein definition
deposits
of 'net loans and advances’ at Sr.No.6 below.
To arrive at ‘Net Loans and Advances’, following items should be netted out from Gross Loans and Advances: i. Provisions held in the case of NPA Accounts as per asset
classification
A facility, under(including
which aadditional
customer Provisions
is allowed for NPAs at higher
an advance up to the than prescribed
credit rates),the
limit against ii. DICGC / ECGC
security by wayclaims received and held
of hypothecation/ pending
pledge adjustment,
of goods, book debts,iii. Part payment
standing crops,received
etc.
The facility is a running account and 'Drawing Power - DP' is periodically determined with reference to the value of the eligible current assets.
A facility, under which a customer is allowed to draw an agreed sum (credit limit) in excess of credit balance in their account. The overdraft facility may be secured (againstThe outstanding amount is
fixed/term
A loan which deposits and other
has a specified securities,
maturity andlike small saving
is payable instruments,
in instalments or insurrender value
bullet form. Termof insurance policies,
loans having etc.)inorexcess
maturity clean of
(i.e.,
onewithout any security).
year should The overdraft
only be reported underfacility
this head
(term loans with maturity up to one year are to be reported under demand loans).
All loans repayable on demand (such as cash credit, overdraft, bills purchased and discounted, etc.) and short-term loans with maturity up to one year, whether secured or
unsecured,
A negotiableare considered
instrument demand
that loans.
gives the holder the right to receive stated fixed sums on demand or at a fixed or determinable future time. When a bank negotiates a bill payable
on demand (sight bill) and provides
Advances where all amounts due are covered funds to the holder,
fully by theatvalue
a fee/ofinterest,
tangiblethe facility
security is referred
(primary to asasbill
as well purchase.
collateral When duly
security) a bank negotiates
discharged to bill
thepayable
bank in after a usance
respect of thosei.e., at a
dues
and the market value of such security is not, at any time, less than the amount of such advance. Securities in intangible form like guarantees / comfort letters, etc. of the
promoter/ others (including State Government guarantees), goodwill etc., are not included. The rights, licenses, authorisations, etc., charged to the banks as collateral in
respect of projects (including infrastructure projects) financed by them, should also not be reckoned as tangible security, unless or otherwise, specifically permitted by the RBI.
However, banks may treat annuities under build-operate-transfer (BOT) model in respect of road / highway projects and toll collection rights, where there are provisions to
compensate the project sponsor if a certain level of traffic is not achieved, as tangible securities subject to the condition that banks' right to receive annuities and toll collection
rights is legally enforceable and irrevocable. Similarly, in case of infrastructure project that have been adopted by various Ministries and State Governments for their respective
public-private partnership (PPP) projects, the debts due to the lenders may be considered as secured to the extent assured by the project authority in terms of the Model
Concession Agreement, subject to prescribed conditions. Further, where the market value of the tangible security is less than all amounts due, the advance is secured only to
the extent of the market value of the assets held as security. The residual portion of the advance is unsecured loan/ advance.

Where the market value of the tangible security is less than all amounts due, the advance is secured only to the extent of the market value of the assets held as security. The
residual portion
Advances of theby
guaranteed advance
Indian is unsecured
and or foreignloan/ advance.
banks, Indian Note: For the limited
Central/State/ purpose of application
Local government of RBI
and or foreign prudential norms
governments, on Income
and other Recognition
recognised and [e.g.,
institutions AssetExport
Classification
Credit
Guarantee
A Corporation
loan/advance which isofgranted
India Limited
without(ECGC), Deposit
any primary or Insurance and Credit Guarantee Corporation (DICGC), Credit Guaranteed Fund Trust for Micro and Small Enterprises
collateral security.
A non-performing Asset (NPA) is an asset, other than investments where; (a) interest and/or instalment of principal remain overdue* for a period of more than 90 days in
respect of a term loan, (b) the account remains ‘out of order’**, in respect of an Overdraft/ Cash Credit (OD/CC), (c) the bill remains overdue for a period of more than 90 days
in the case of bills purchased and discounted, (d) the instalment of principal or interest thereon remains overdue for two crop seasons for short duration crops, the instalment
of principal or interest thereon remains overdue for one crop season for long duration crops, (f) the amount of liquidity facility remains outstanding for more than 90 days in
respect of a securitisation transaction undertaken in terms of guidelines on securitisation, (g) derivative transactions where the overdue receivables representing positive mark-
to-market value of a derivative contract remain unpaid for a period of more than 90 days from the specified due date for payment, (h) In respect of a working capital borrowal
account, if irregular drawings are permitted in the account for a continuous period of more than 90 days even though the unit may be working or the borrower's financial
position is satisfactory. For this purpose, any outstanding in the account based on drawing power calculated from stock statements older than three months would also be
deemed as irregular. (i) an account where the regular / ad hoc credit limits have not been reviewed/ renewed within 180 days from the due date / date of ad hoc sanction. In
case of interest payments, banks should, classify an account as NPA only if the interest is due and charged during any quarter is not serviced fully within 90 days from the end of
the quarter. If the debits arising out of devolvement of letters of credit or invoked guarantees are parked in a separate account, the balance outstanding in that account also
should be treated as a part of the borrower’s principal operating account for the purpose of application of prudential norms on income recognition, asset classification and
provisioning. However, the bills discounted under LC favouring a borrower may not be classified as a non-performing asset (NPA), when any other facility granted to the
borrower is classified as NPA. However, in case documents under LC are not accepted on presentation or the payment under the LC is not made on the due date by the LC
issuing bank for any reason and the borrower does not immediately make good the amount disbursed as a result of discounting of concerned bills, the outstanding bills
discounted will immediately be classified as NPA with effect from the date when the other facilities had been classified as NPA. * ‘Overdue’ – Any amount due to the bank
under any credit facility is ‘overdue’ if it is not paid on the due date fixed by the bank. ** ‘Out of Order’-An account should be treated as ‘out of order’ if the outstanding
balance remains continuously in excess of the sanctioned limit/drawing power for 90 days. In cases where the outstanding balance in the principal operating account is less
than the sanctioned limit/drawing power, but there are no credits continuously for 90 days as on the date of Balance Sheet or credits are not enough to cover the interest
debited during the same period, these accounts should be treated as ‘out of order’.

Assets that do not generate income and inter-alia include cash in hand or cash with banks’ agents/ service providers, fixed assets (excluding leased assets), balances in current
accounts
Loan with other
syndication banksparticipation
involves including the byRBI, and other
a group assetsinstitutions
of lending including intangible assets. institutions) as financiers to a single borrower. The borrower selects a bank or
(banks/ financial
financial
The amount of non-performing assets, which are outstanding in the books of the branchesof
institution to act as a nodal agent for syndication which then invites participation (orother banks and
outstanding financial institutions
at borrowers’ to finance
loan account level inthe single borrower.
centralised Although
operations the
unit) but
borrower
have been signs a common
written-off document,
(fully or drawn
partially) at up by
Head the level.
Office syndicate manager, the borrower has distinct contractual relationship with each of the syndicate members.
As per Banking Regulation Act, 1949, it comprises investments in India as well as investments outside India. Investments in India comprise investments in Indian government
securities (Central/ State Government securities and Government of India Treasury bills at book value), other approved securities (as per Banking Regulation Act, 1949),
shares/debentures/bonds (not included under other approved securities) of companies and corporations, investments in subsidiaries/ joint ventures (including those in RRBs),
Certificate of Deposits and others (other residual investments), if any, like gold, commercial paper and other instruments in the nature of shares/ debentures/bonds.
Investments outside India comprise foreign government securities (including local authorities), shares, debentures & bonds, subsidiaries and/or joint ventures abroad and other
investments. As repo/ reverse repo transactions are now accounted as lending/ borrowing obligations (and not as sale/purchase agreements), securities sold under repo
transactions (both under market repo as well as RBI LAF window) should continue to be included under investments. However, securities bought under reverse repo
transactions (both market reverse repo as well as RBI LAF window) should not be included under investments. Investments are to be shown gross of provisions made for
depreciation and provision for non-performing investments. Note: For reporting of investments for the purpose of SLR (such as in Form VIII and Statement on daily
maintenance of SLR), the securities (including margins) sold under market repo transactions should not be accounted for SLR by the borrower of funds. The securities (including
margins) acquired under market reverse repo as well as RBI LAF window will be reckoned for SLR purpose by the lender of funds.

Gross investments less aggregate of provisions for non-performing investments and depreciation for diminution in value of investments.
An NPI, similar to a non-performing advance (NPA), is one where; (i) Interest/ instalment (including maturity proceeds) is due and remains unpaid for more than 90 days. (ii) The
above would apply mutatis-mutandis to preference shares where the fixed dividend is not paid. (iii) In the case of equity shares, in the event the investment in the shares of any
company is valued at Re.1 per company on account of the non-availability of the latest balance sheet would also be reckoned as NPI. (iv) If any credit facility availed by the
issuer is NPA in the books of the bank, investment in any of the securities, including preference shares issued by the same issuer would also be treated as NPI and vice versa.
However, if only the preference shares are classified as NPI, the investment in any of the other performing securities issued by the same issuer may not be classified as NPI and
any performing credit facilities granted to that borrower need not be treated as NPA. (v) The investments in debentures/ bonds, which are deemed to be in the nature of
advance, would also be subjected to NPI norms as applicable to investments. (vi) In case of conversion of principal and / or interest into equity, debentures (including zero
coupon bonds or other instruments which seek to defer the liability of the issuer), such instruments should be treated as NPI, ab initio, in the same asset classification category
as the restructured loan. The prudential treatment for Central Government Guaranteed bonds has to be identical to Central Government guaranteed advances. Hence, bank's
investments in bonds guaranteed by Central Government need not be classified as NPI until the Central Government have repudiated the guarantee when invoked. However,
this exemption from classification as NPI is not for the purpose of recognition of income.

Assets which are subject of a lease arrangement.

The amount of interest accrued but not due on advances and investments and interest due but not collected on investments. Only such interest accrued in respect of assets
where banks are
Tax Deducted allowed(TDS)
at Source to recognise
refers toincome on accrual
the deduction basis should
in payment made bebyshown underresponsible
the person this head. for making the payment as per the relevant provisions of the Income Tax Act,
1961.
The amount of tax deducted at source on income, and taxes (advance income tax, wealth tax, fringe benefit tax, or other applicable taxes) paid in advance or self-assessment
tax paid, etc.adjustments
Inter-office to the extent that these
represent items
items are notand
in transit set unadjusted
off against relative
items. Thetax inter-office
provisions. adjustments balance, if in debit, is considered inter-office adjustments assets. Only net
position of inter-office accounts, inland as well as foreign, should be shown here. For arriving at the net balance of inter-office adjustment accounts, all connected inter-office
accounts should be aggregated and the net balance, if in debit only should be shown here.
A share, which is not a preference share, is called equity/ ordinary share.
Interest free funds remitted from Head Office (Overseas Parent) for meeting capital adequacy norms of foreign bank branch (es) in India. These are kept in a separate account
in
ThatIndian
partbooks.
of the share capital, which enjoys preferential rights in respect of payments of fixed dividend and repayment of capital. Preference shares may also have full or partial
participating
That part of the rights in surplus
subscribed profits
share or surplus
capital capital.
for which consideration in cash or otherwise has been received. Paid up capital comprises of equity share capital and preference share
capital
That subject
part of thetosubscribed
RBI prescriptions as regards
equity share capitalpreference
for which shares (Presently,
consideration onlyorperpetual
in cash otherwise non-cumulative preference
has been received. sharescalls-in-arrears
Accordingly, are advised to isbenot
included). Bonus shares
part of paid-up equityallotted
capital,
by
but the bank value
paid-up are alsoof included.
forfeited Foreignisbanks
shares should
included report
here. Also their local
bonus capital
shares funds
allotted by here.
the enterprise are included. In case of foreign banks, their local capital funds should be
The portion of earnings, receipts or other surplus (including balances in profit/ loss account) of an enterprise (whether capital or revenue) appropriated by the management for
included
aPaid
general here.
or a specific purpose other than(e.g.,
a provision forreserves,
depreciation or reserve,
diminution in the value ofrevenue
assets or forother
a known liability. ‘Reserve’reserves,
shall not and
include any amount
up capital + all reserves and surplus statutory capital share premium, and reserves, revaluation balance carried
written-off
forward or profit
from retainedand byloss
way of providing
account), net foraccumulated
of depreciation, renewals
losses/ debitorindiminution
the P& L in value of assets or retained by way of providing for any known liability. Reserves could be
Account.
Reserves
of created
many types, forout
eg.,ofstatutory
the profits in compliance
reserves, with the share
capital reserve, Section 17 (c) and
premium, 11(2)(b)
revenue andof other
the Banking Regulation
reserves, Act,reserves,
revaluation 1949. etc.
A reserve created on the revaluation of assets or net assets represented by the surplus of the estimated replacement cost or estimated market values over the book values
thereof.
Capital reserves arise on account of sale of land and premises, revaluation of fixed assets, sale investments held under ‘Held to Maturity’ category or investment in subsidiaries/
associates,
The excess of joint
theventures
issue price(or of
other strategic
shares partners),
over their on amalgamations/ mergers, consolidation of financials of subsidiary, etc. In respect of foreign banks, it also includes
face value.
funds held in a separate account which (a) are interest-free and remitted from abroad for the purpose of acquisition of property and (b) arise out of sale of assets in India, and
Any reservefor
not eligible other than Capital
repatriation Reserve.
so long as the bank functions in India. These reserves are not available for distribution as dividend.
In the event of provisions created on account of depreciation in the ‘Available for Sale’ or ‘Held for Trading’ categories being found to be in excess of the required amount in
any year, the excess should be credited to the Profit & Loss account and an equivalent amount (net of taxes, if any and net of transfer to Statutory Reserves as applicable to
such excess provision) should be appropriated to an Investment Reserve Account.

Balance amount remaining in profit and loss account after making all appropriations. These are shown as balances of profit/ loss carried to the balance sheet under 'Reserves
and Surplus'.
The excess of the book value of assets of a bank over its liabilities. Net worth comprises of paid-up capital plus Free Reserves including Share Premium but excluding
Revaluation
A reserve, theReserves plusofInvestment
utilisation which is notFluctuation Reserve/
restricted in and credit balance in Profit & Loss account, less debit balance in Profit and Loss account, Accumulated Losses,
any manner.
Intangible Assets and Deferred Revenue Expenditure. No general or specific provisions should be included in computation of net worth.
Borrowings by a bank may be from the RBI/ Government (in form of LAF overnight/ term fixed/ variable rate repo, from Government owned institutions, etc.), borrowings from
other banks,
Financing of afrom
loannon-depository
asset of a bank institutions (suchraised
through liability as insurance companiesagencies.
from refinancing and pension funds), from
Government refinancing
of India, institutions
RBI, EXIM (EXIM Bank,
Bank, NABARD NABARD
and SIDBI etc.), agencies
are major from other financial
that provide
institutions,
refinance to from
bankspublic, etc.extended
for loans Borrowings may be through
to specified sectors.inter-bank/ money/
The refinance capital
obtained by markets either
a bank from in the form
refinancing of, simple
agencies borrowing/
(including otherlending arrangements,
institutions notified byorthe
byRBI
wayorof
refinancing, participation certificates, or through
Government of India) represents borrowings of the bank. markets (such as repo), or by issuing capital/ debt instruments (such as preference shares excluding PNCPS). Borrowings will
A subset of total borrowings of a bank. Borrowings by one bank from another bank. It includes borrowings by banks in inter-bank markets such as Repo, Call money, etc. for
specified period. Inter-office transactions are not borrowings and hence should not be included under the item.
A short-term unsecured money market instrument issued in the form of promissory note by companies, PDs and FIs, satisfying stipulated eligibility criteria. It is issued at a
discount
Borrowings on contracted
the face value and or
in India canabroad
have tenure
againstofsecurities.
7 days to The
onesecurity
year from the date
(tangible of issue.
assets) mayItbe
is freely tradable.
forfeited by theIndividuals,
lender if thebanks, otherfails
borrower corporate
to makebodies (registered
the necessary or
payments.
incorporated in India), unincorporated bodies and non-resident Indians are also eligible to invest in Commercial Paper.
Acceptance of Money, repayable on demand or otherwise, and withdrawable by cheque or otherwise. Aggregate deposits comprise deposits of branches in India and outside
India; It comprises
Business of (a) all
in India means demand deposits
transactions from
done banks branches
through and from ofothers
banks (including
located incredit
India.balances
The term in excludes
overdrafts, cash creditdone
transactions accounts, deposits
by offshore payable
banking at call,
units (OBUs)overdue deposits,
of Indian banks
inoperative
located in current
India, accounts,
except with matured
regard to time transactions
their deposits andincash certificates,
respect of the certificates
SEZs and ofindeposits,
units the etc.)., Tariff
Domestic (b) savings
Area. bank deposits
Further, credit(including
given (or inoperative
any other saving bank
business) by accounts)
Deposits
and (c) placed
term by other
deposits frombanks
bankswith
andthe bank.(including fixed deposits, cumulative and recurring deposits, cash certificates, certificates of deposits, annuity deposits, deposits
others
International Finance Service Centres (IFSC) Banking Units (IBUs) should also be excluded.
Deposits other than inter-bank deposits, which are repayable on demand or otherwise and withdrawable by cheque or otherwise.
Current Account shall mean a form of non-interest-bearing demand deposit where from withdrawals are allowed any number of times depending upon the balance in the
account or up to adeposits
Current/demand particular agreed of
comprise amount,
balances andinshall alsoaccounts
current be deemed to include
(including other deposit
inoperative accounts
accounts) whichdeposits
and other are neither Savings
payable Deposit nor
on demand, Term Deposit.
excluding savings account
deposits,Deposit
Savings but including
means cash
a formcertificates,
of interestmatured
bearing term
demanddeposits (that
deposit are is
which not auto renewed),
a deposit account credit
whether balances in overdrafts,
designated cash
as “Savings credit accounts,
Account”, “Savingsand sundry
Bank deposits
Account”, identifiable
“Savings
as relating
Deposit to deposits
Account”, accounts.
“Basic Savings Bank Deposit Account (BSBDA)” or by whatever name called which is subject to the restrictions as to the number of withdrawals as also the
amount of withdrawals permitted by the bank during any specified period.

Term Deposit means an interest bearing deposit received by the bank for a fixed period that also includes deposits such as Recurring /Cumulative /Annuity /Reinvestment
deposits
Demand and Cashshall
Deposit Certificates.
mean a deposit received by the bank which is withdrawable on demand and shall include current deposits, demand portion of savings deposits, credit
balances in overdrafts, cash credit accounts, deposits payable at call, overdue deposits, cash certificates, etc.

Deposits, which are not demand deposits.

A negotiable money market instrument issued in dematerialised form or as a Usance Promissory Note against funds deposited at a bank or other eligible financial institution for
aA specified
security intime
the period.
form ofCDs can bethat
deposits issued by scheduled
the bank requirescommercial
its customers banks (excluding
to place with it Regional Ruralcurrent/
when it takes Banks and Local Area
potential Banks)on
exposure and select
their All-India
account. Financial
Margin Institutions
deposits, which are
(AIFIs)
not that
free have been
deposits, must permitted
be treated byasthe RBI toliabilities”.
“Other raise short-term resources within the umbrella limit fixed by the RBI. The maturity period of CDs issued by banks should not be
Single
less Rupee
than term
7 days and deposits
not moreof Rupees
than one two crore
year, andthe
from above
datefor Scheduled
of issue. commercial
FIs can issue CDs Banks (excluding
for a period Regional
not less than 1Rural
yearbanks)
and notand Small Finance
exceeding 3 yearsBanks.
from the date of issue. CDs are
A deposit whose interest rate is periodically adjusted upwards or downwards on the basis of a clearly linked benchmark interest rate or an index. Only market-based
benchmark
Instrumentsrates,
issuedwhich are directly
by banks against observable
money receivedand transparent
from customers, to thewhich
customer,
are toshould
be paid betoused
the by banks fororpricing
customers as per their
their floating rate deposit.
orders (usually at different bank branches). Bills
payable include demand drafts, telegraphic transfers, traveller's cheques/ cards, pay-orders, banker's cheques and
The inter-office adjustments balance, if in credit, should be shown under this head. However, the bank should first segregate the credit entries similar other instruments issues by banksfor
outstanding butmore
not presented
than 5
for payment.
years in the inter-office account and transfer them to a separate Blocked Account which should be shown under ‘Other Liabilities & Provisions - Others’. While arriving at the
Interest accrued but not due for payment on various deposits and borrowings.
net amount of inter-office transactions for inclusion here, the aggregate amount of Blocked Account should be excluded and only the amount representing the remaining credit
An amount
entries shouldheldbeinnetted
the balance
againstsheet
debittowards
entries.depreciation
Only net positionor diminution in value
of inter-office of assets
accounts, or towards
inland as well any known should
as foreign, liabilitybeand the amount
shown here. of which cannot be determined with
substantial accuracy.
General provisions areThis would include
provisions routed general
throughprovisions,
profit and specific provisions
loss account but not and any other provision
attributable made
to any actual by the banks.
diminution in value or identifiable potential loss in any specific asset.
This would include
An amount floating
held in the provision,
balance sheet, counter
which is cyclical provisioning
attributable to actualbuffer, provisions
diminution for unhedged
in value foreign
or identifiable currency
potential lossexposure, provision
in a specific made
asset. This in respect
would includeofprovisions
standard assets,
made etc.
towards non-performing assets (including additional provisions made on them over and above the regulatory requirements),
A provision which is not made in respect of specific non-performing asset/s or made, in excess of regulatory requirement for provisions for standard assets. provisions made towards restructured assets
(including assets classified as restructured standard asset), fraud accounts etc.
A provisioning buffer created during good times i.e., when the profits are good, which can be used for absorbing losses in a downturn

Claims not acknowledged as debt represent present obligations that arise from past events or transactions but are not recognised due to the fact that either it is not probable
that an outflow
Financial of resourcesguarantees
and performance embodyingissued
economic benefits
by banks will beofrequired
on behalf to settle
their clients. the obligations,
A financial guarantee orassures
a reliable estimate
payment of of the amount
money of obligations
in the event cannot beofmade.
of non-fulfilment contractual
obligations by the client. A performance guarantee provides assurance of compensation if there is delayed or inadequate performance
Any arrangement how so ever named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying on a contract. A deferredpresentation.
payment
guarantee
An assuresbypayment of instalments due to
inaanother
supplier of goods.
ThisLCitem
confirmed
will include a Letters
bank based and operating
of Credit to which the bank hascountry
added is itspayable by the bills
confirmation, confirming
accepted/bank.co-accepted and such other items that have the character of acceptance.
These are to be reported on gross basis. Acceptance is the drawee’s
A commitment to provide credit under pre-specified terms and conditions. acknowledgement of the liability on bills of exchange, in writing on the instrument itself. A bill may also
bear a co-acceptance by a bank, which is guaranteed to honour, the instrument in the event of default by the drawee.
Negotiable instruments drawn by banks for suitable maturities up to 90 days on the strength of underlying commercial bills discounted by the banks’ respective branches.
Through
Higher ofthis
suminstrument,
of negativethemarkunderlying
to market commercial bills can
(MTM) amounts of be rediscounted
contracts havingmultiple
negativetimes
MTM(through secondary
and exposure market)
amount with other
computed as perbanks andexposure
current approved financial
method forinstitutions.
computing
The minimum
default rediscounting period is 15 days.
The sumrisk capital
of the charge.
positive mark-to-market value of market related off-balance sheet transactions.
Potential future credit exposure is determined by multiplying the notional principal amount of each of the underlying contracts irrespective of whether the contract has a zero,
positive or negative mark-to-market value by the relevant add-on factor prescribed by RBI, according to the nature and residual maturity of the instrument. However, in the
case of CDS contracts, the protection seller's exposure on protection buyer cannot exceed the amount of the premium unpaid.
The credit equivalent amount in relation to a non-market related off-balance sheet item is determined by multiplying the contracted amount of that particular transaction by
the relevant credit conversion factor. The credit equivalent amount of a market related off-balance sheet transaction is calculated using the Current Exposure Method and is
the sum of current credit exposure and potential future credit exposure of these contracts.

Current Exposure Method is used to calculate the exposure amount for the purpose of computing default risk capital charge for counterparty credit risk.
Possible credit exposure that may arise in the future depending on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of
the
Billsbank.
held by a bank for collection on behalf of its customers. These bills are generally bills of exchange accompanied by documents of title to goods.
Measures the change in market value of the security/ derivative contract on account of one basis point change in the yield.

Includes interest and discount on all types of loans and advances like cash credit, demand loans, overdrafts, export loans, term loans, domestic and foreign bills purchased and
discounted
Income earned (including those rediscounted),
from contingent facilities (suchinterest
as fee onincome
debt instruments
earned for (including
issue of LCs, Government securities),
BGs, acceptances, overdue interest
endorsements and also penal
and committed lines interest,
of credit)interest subsidy,
and positive etc., to
marked if
any,
market relating
(MTM) to valuations
such advance/bills.
of Note:
derivative Dividend on
transactions or equity/
gains preference
recorded on shares is other
derivative operating
transactions dueincome.
to Interestmovements
favourable on advance of income
market tax, etc. are(such
variables to beasconsidered
yields, as
exchange
Income earnedincome.
miscellaneous from regular activities of banks other than from the core operations of lending and investing of funds, which yield interest income. It includes commission,
rates).
exchange and brokerage
Non-operating income is (such
income asearned
commission by bankson bills
fromforother
collection, commission
than their core/ regular/ exchange on and
activities remittances
which are / transfers, commission
not their regular source onofLCs / guarantees,
income, processing
e.g., profit charges,
(and losses) on sale
syndication
of fixed fees,HTM
assets/ credit / debitinvestments,
category card fee income, locker rent,
revaluation of commission
HTM category on government
investments, business,
recovery of brokerage on
written-off securities,
assets, etc. fee on insurance / mutual fund referral and banking
The amount
service a bank
charges), receives
profit in part or
on exchange full against (revaluation
transactions the previously written
gains off assets.
/ losses It is considered
on forward as non-operating
foreign exchange contracts and income.
other derivative contracts, premium income / expenses
Expenses other than interest expenses, provisions & contingencies. It includes payments to and provisions for employees, rent/ taxes & lighting, printing & stationery,
advertisement
These are interest & publicity, depreciation
paid on deposits on bank's property,
and borrowings. It includesdirectors'
interestfees/
paidallowances
on all types&ofexpenses, auditors' fees
deposits including deposits& expenses (includingbanks
from individuals, branch auditors’
and fees and expenses),
other institutions, discount/
law charges, postages/
interest oncomplete
all borrowings telegrams &
and refinance telephones,
(including repairs
those & maintenance,
from the RBI, insurance
otherofbanks and other
and financialexpenditure.
Write-off, or partial, is the reduction in the gross carrying amount an asset, when theinstitutions).
entity has noAllreasonable
other payments like interest
expectations on participation
of recovering the assetcertificates, penal
in its entirety or
interest
aThe
portion paid, etc. also form part of interest expenses.
thereof.
difference between the interest income and the interest expenses.
A profitability ratio which indicates the profits (i.e., income) generated on average working funds (i.e., total of assets excluding accumulated losses, if any). It is computed by
dividing net income (i.e., profits after tax) by average working funds. Average working funds is derived from the monthly average total assets as reported to RBI in Form X under
Section 27 of the Banking Regulation Act, 1949 during the year.
As per applicable accounting standards and explanations issued thereon.
Consumer credit refers to the loans given to individuals, which consists of (a) loans for consumer durables, (b) credit card receivables, (c) auto loans (other than loans for
commercial
Personal loans use), (d) to
refer personal loanstosecured
loans given individualsby gold,
and gold
consistjewellery, immovable
of (a) consumer property,
credit, fixed deposits
(b) education (including
loan, (c) loans given FCNR(B)), shares enhancement
for creation/ and bonds, etc., of (other than for
immovable business
assets (e.g., /
commercial
housing,credit purposes), (e)
etc.), and (d) amount personal
loans given loans to
for investment professionals
in financial (excluding loans
assets (shares, for business
debentures, purposes),
etc.). and (f) loans given for other consumptions purposes (e.g., social ceremonies,
Funded
etc.). However,implies actually
it excludes (a) education lent or credited
loans, (b) loanstogivena borrower's account
for creation/ or debited
enhancement to immovable
of borrower's assets
loan/ cash
(e.g.,credit/
housing,overdraft
etc.), (c)orloans
any other
givenborrowing account
for investment for
in financial
payment on behalf of the borrower.
Weighted average lending rate (WALR) relates to all types of rupee credit accounts (viz., cash credit, demand loans, overdrafts, inland bills financed and discounted, term loans
and other types,
Pre-shipment if any).
credit meansTheanyamount
loan orof advance
loans under eachor
granted credit account
any other is multiplied
credit provided with
by a its
bankcorresponding
to an exporter interest rates (usually,
for financing it is done
the purchase, individualmanufacturing
processing, account-wise under each
or packing
type
of of credit
goods prior account)
to shipmentand /then,
workingadded together.
capital expensesThis towards
sum of all productsofis services
rendering then divided
on bybasis
the the total
of amount
letter of of loans
credit to arrive
opened in hisatfavour
WALR.or in favour of some other person, by an
Take-out finance is an arrangement where an institution / bank, financing infrastructure projects, will have an arrangement with any financial institution for transferring to the
overseas
latter, thebuyer or a confirmed
outstanding in respect andofirrevocable
suchare order
financing in for
theirthe export
books onof goods / services basis.
a pre-determined from India or any take-out
Conditional other evidence
finance: ofIn
anthis
order for export
scenario, from India
the taking overhaving beenwould
institution placed on
Unsecured
the guarantees are those which not secured byexport
any collateral.orLimit on
ofthe amount of unsecured guarantees
waived.is fixed by a bank's board.
haveexporter
stipulatedor some
certainother person,
conditions tounless lodgement
be satisfied by theofborrower orders
before itletter
is taken credit with the
over from the bank
lendinghasinstitution.
been
Slippage refers to new accretion to NPAs during a period.
Standard advance is an advance which is not non-performing as per extant IRAC and provisioning norms.
A substandard advance is one, which remains non-performing for a period less than or equal to 12 months.
An advance which remains in the substandard category for a period of 12 months.
A restructured account is one where the bank, for economic or legal reasons relating to the borrower's financial difficulty, grants to the borrower, concessions that the bank
would not otherwise
Restructured standardconsider.
advancesRestructuring
are the advances wouldrestructured/
normally involve modification
permitted of termsasofstandard,
to be classified the advances
as per/ securities,
extant DBRwhich would generally include, among others, alteration
instructions.
of repayment period / repayable amount/ the amount of instalments / rate of interest (due to reasons other than competitive reasons). However, extension in repayment
A Mortgage-backed
tenure of a floating rate security
loanisona reset
bond-type security
of interest in so
rate, which
as tothe collateral
keep is provided
the equated monthlyby ainstalment
pool of mortgages. Income from
(EMI) unchanged, the underlying
provided it is appliedmortgages
to a class is
ofused to meet
accounts interest
uniformly,
and principal
Treasury bills repayments.
are short term negotiable non-coupon bearing instruments issued by the Government of India.
Shifted investments are amount of investments shifted from/to one category to another, among the three categories i.e. held to maturity (HTM), available for sale (AFS), and
held for trading
Equities (HFT). refer to the bank's investment in equities of subsidiary / associate / joint venture either in India or abroad or equity participation in other entities.
participations
Held for Trading (HFT) Securities: The securities acquired by the banks with the intention to trade by taking advantage of the short-term price / interest rate movements. These
securities are to be sold within 90 days. Held to maturity (HTM) Securities: The securities acquired by the banks with the intention to hold them up to maturity. Available for
Sale (AFS) Securities: Securities not classified under HFT and HTM are included under AFS.
ANBC denotes the outstanding Bank Credit in India [As prescribed in item No.VI of Form ‘A’ under Section 42 (2) of the RBI Act, 1934] minus bills rediscounted with RBI and
other approved Financial Institutions plus permitted non SLR bonds/debentures under Held to Maturity (HTM) category plus other investments eligible to be treated as part of
priority sector lending (e.g., investments in securitised assets). The outstanding deposits under RIDF and other funds with NABARD, NHB, SIDBI and MUDRA Ltd. in lieu of non-
achievement of priority sector lending targets/sub-targets will form part of ANBC. Advances extended in India against the incremental FCNR (B)/NRE deposits, qualifying for
exemption from CRR/SLR requirements, as per the Reserve Bank’s circulars DBOD.No.Ret.BC.36/12.01.001/2013-14 dated August 14, 2013 read
with DBOD.No.Ret.BC.93/12.01.001/2013-14 dated January 31, 2014 and DBOD mailbox clarification issued on February 6, 2014 will be excluded from the ANBC for
computation of priority sector lending targets, till their repayment. The eligible amount for exemption on account of issuance of long-term bonds for infrastructure and
affordable housing as per Reserve Bank’s circular DBOD.BP.BC.No.25/08.12.014/2014-15 dated July 15, 2014, will also be excluded from the ANBC for computation of priority
sector lending targets.

Inside liabilities are capital, reserves and risk provisions.

Outside liabilities are liabilities excluding capital, reserves and risk provisions.
Liabilities which are sensitive to market risks.
Indian banks operating abroad through branches, assign a specific amount as assigned capital for the overseas branches. This assigned capital is reflected as assigned capital in
the overseas
Perpetual branch ledgerpreference
non-cumulative and reported to DSB
shares refer (overseas returns)
to preference submitted
shares which byaresuch banks.
eligible for inclusion in additional Tier I capital subject to prescribed guidelines.
Disclosed reserves refer to the appropriations of profit after tax to specific categories of reserves which are required to be disclosed in Schedule 2 of the published balance
sheet as percapital
Regulatory provisions
means of total
the Banking
of tier I Regulation Act 1949
and tier II capital and regulatory
calculated instructions.
as per extant instructions on capital adequacy.
Capital conservation buffer refers to capital buffer, comprising of common equity tier I capital, which banks are required to maintain above the regulatory minimum capital requirement of 9% under part - D of
A disallowance of offsets to required capital using the BIS Method for assessing market risk for regulatory capital. In order to calculate the capital required for interest rate risk
of a trading
In the portfolio,
BIS method for the BIS Method
determining allows offsets
regulatory capital,ofnecessary
long and to short positions.
cushion marketYet,risk,
interest rate risk
a reversal of instruments
of the at different
offsets of a general horizontal
risk charge of a points of the yield
long position curve position
by a short are not in
perfectly
each correlated.
currency in two Hence,
or more the BIS Method
securities in therequires
same thatband
time a portion
in the ofyield
these offsets
curve wherebe disallowed.
the securities have differing credit risks.
The Clearing Corporation of India Ltd. (CCIL) has developed and introduced, with effect from January 20, 2003, a money market instrument called ’Collateralised Borrowing and
Lending
Lower tier Obligation
II bonds are(CBLO)’.
rupeeIt tieris a IImoney market instrument
subordinated debt which withcan be original
raisedmaturity
by Indianvarying
banks from one dayintolower
for inclusion one year.
tier IIItcapital,
is fully collateralised by government
subject to prescribed terms andsecurities,
conditions.
deposited
Foreign by the
banks borrowers
operating in in their
India can SGL orsubordinated
raise constituents'debt subsidiary
in tier general
II capital ledger
by way (CSGL)
of account
head office with CCIL andintraded
borrowings foreign oncurrency,
the platform provided
subject to by CCIL.guidelines.
prescribed This instrument
Upper tier II bonds are the debt capital instruments issued by Indian banks and qualify the required terms and conditions
creates an obligation on the borrower to repay the money borrowed along with interest on a predetermined future date; and provide right and authority to the lender as set out in Annex-3, and also the capital instruments
to
such
Hybridascapital
perpetual cumulative
instruments arepreference
those which shares
have(PCPS), redeemable
close similarities non-cumulative
to equity, preference
in particular when they shares
are (RNCPS) and redeemable
able to support losses on cumulative
an ongoing preference shares
basis without (RCPS) qualifying
triggering
terms and conditions
liquidation. areas
Theseinstruments set outas
included in part
Annex-4,
of tierofIIthe extant
capital master
subject circular on guidelines.
to cash
prescribed ’Prudential Guidelines on Capital Adequacy and Market Discipline - New Capital Adequacy
Securitised
Framework debt (NCAF)’. are debt obligations created out of flows from the pool of securitised assets.
Redeemable debt instruments are the bonds / debentures which Indian banks may raise to augment capital funds for capital adequacy purpose, subject to prescribed guidelines.
Subordinated debt refers to debt instruments eligible for inclusion in Tier II capital subject to prescribed guidelines. These instruments rank subordinate to claims of other debts
in
Asthe
percase of bankruptcy
the Master Circularor onliquidation
cash reserve of the
ratiodebtor.
(CRR)/ statutory liquidity ratio (SLR) dated July 01, 2015, long-term time deposits are deposits of contractual maturity of more than one year.
Core deposits is the sum of all deposits (including current and savings accounts) with maturity of more than a year (as reported in structural liquidity statement) and net worth.
All accounts in India which have not been operated for 10 years. Provided that in case of money deposited for a fixed period the said term of 10 years shall be reckoned from
the date ofEarners'
Exchange expiry of such period
Foreign Currency Account (EEFC) is an account maintained in foreign currency with an authorised dealer i.e., a bank dealing in foreign exchange. It is a facility
provided
Risk to thecover
provisions foreignall exchange
charges toearners,profit andincluding exporters,
loss account to credit
to record actual100losses
per cent of their foreign
/ diminution exchange
in values earnings
recognised to the /account,
and losses so that
diminution the account
in values holders
estimated do not have
and recognized
to
by convert
the bank foreign
during exchange
a financial into
year.rupees and vice versa, thereby minimising the transaction costs.
Para-banking activities are those permitted activities which a banking company may engage, in addition to the business of banking, under Sub-Section 1 of Section 6 of the
Banking
An offshore Regulation
bankingAct unit1949 subject of
is a branch toaregulatory
bank located guidelines issued
in a special on para-banking
economic zone (SEZ) activities.
and which has obtained the permission under clause (a) of Sub-Section (1) of Section 23
of the Banking Regulation Act, 1949 as defined in Para 2 (u) of Chapter
Liability on partly paid-up shares arise when only a portion of the face value of shares has 1 of 'The Special Economic
been paid Zones
and Act, 2005' dated is
the shareholder June
still23, 2005. to pay the remaining amount to the
required
issuer company.
Forward deposits are a commitment to place deposits at a future date for an agreed amount and at pre-determined rate. It is an off-balance sheet item.
Non-funded commitments include any commitment which is not covered under funded commitments.
Non-fund based advances refer to contingent credits which are off-balance sheet exposure such as letter of credit, guarantees, etc. issued to a borrower.
Short term facilities are credit facilities (funded and/ or non-funded) for less than one year.
Revolving underwriting facilities is an agreement whereby a bank agrees to provide credit facility to an issuer (borrower) by buying any unsold notes / bonds as per the agreed
terms and conditions.
A formal standby facility or credit line is a formalised arrangement in which the counterparty has the right, but not the obligation to draw funds to a specified limit.
Gross exposure includes credit exposure (funded and non-funded credit limits) and investment exposure (including underwriting and similar commitments) without making
adjustments.
Net funded exposure is the gross funded exposure ‘minus’ collaterals, guarantees, insurance etc. Netting/Offsetting may be permitted for eligible financial collaterals; credit
derivatives,
Real Estate isthird party guarantees
generally defined as an and credit insurance
immovable asset - available
land (earth in/space)
issuedandby counterparties
the permanently in aattached
lower risk category for to
improvements capital adequacy
it. Real purposesincludes
estate exposure than theexposure
counterparty on
to home
which commercial
loans, exposure is assumed.
real estate loans, loans against property, investments in mortgaged backed securities, etc.
Securitisation means a process by which a single performing asset or a pool of performing assets are sold to a bankruptcy remote SPV and transferred from the balance sheet of
the originator to the
A re-securitisation SPV in return
exposure for an immediate
is a securitisation cashinpayment.
exposure which the risk associated with an underlying pool of exposures is trenched and at least one of the underlying
exposures is a securitisation exposure.
Non-market related exposure is off-balance sheet exposureIn addition, an exposure to one
(other thanormarket
more re-securitisation
related off balance exposures is a re-securitisation
sheet exposures) such as directexposure.
credit substitutes, trade and performance
related contingent items and commitments with certain drawdown, other commitments, etc.
Market related exposure includes foreign exchange contracts, interest rate contracts, and any other market related contracts specifically allowed by the Reserve Bank which
gives
Creditrise
risktois credit risk.
the possibility of losses associated with diminution in the credit quality of borrowers or counterparties. Credit risk emanates from a bank’s dealings with an
individual,
Credit event payment bank,
corporate, is the financial
amount which institution or a sovereign.
is payable by the credit protection provider to the credit protection buyer under the terms of the credit derivative contract following
the occurrence of a credit event.
Adjusted value of credit risk mitigant is the value of eligible financial collaterals after application of 'haircuts' as per extant instructions on capital adequacy framework.
Risk adjusted value is the net exposure (exposure adjusted for collaterals, after applying haircuts on both exposure and collateral) multiplied by the applicable risk weight. The
purpose underlying
Risk-weighted assetsthe areapplication of haircutthe
used to determine is to captureamount
minimum the market-related volatility
of capital a bank mustinherent
hold in in the value
relation of exposures
to the risk profileas
of well as of the
the bank’s eligible
assets. Thefinancial collaterals.
bank’s assets value is
multiplied by the risk weight applicable to the counterparty or to the purpose for which the bank has extended finance or the
Credit Default Swap (CDS) is a bilateral derivative contract on one or more reference assets in which the protection buyer pays a fee through the life of the contract type of asset, whichever is higher. Riskinweighted
return
assets
for are calculated
a credit as perby risk weights assigned tofollowing
each asset (funded/ non-funded) as per entities.
prescribed guidelines.
A forex buy event
sell swappayment
involves the protection
buying foreign seller
currency on a near a credit event
maturity of the
date andreference
simultaneous selling of the foreign currency on a future maturity date as per the agreement
between
A forex sellthebuyparties
swapOver the counter
involves (OTC) currency on a near maturity date and simultaneous buying of the foreign currency on a future maturity date as per the agreement
selling foreign
between the parties Over the
An agreement between two counterparties counter (OTC)whereby one counterparty agrees to exchange principal and/ or interest payments on a loan or an asset in one currency to the
second counter party, in return for
Open foreign exchange position limit capital charge receiving payments of capital
is the principal and/ or
charge, interest
which paymentson
is maintained ontotal
an equivalent
open foreignloanexchange
or an asset in another
position currency
limit as the perfrom the second
regulatory counter
prescriptions.
party as per the agreed rates.
A credit conversion factor is the factor which converts the notional amount of the transaction covered under off-balance sheet exposure item into a credit equivalent amount,
which
Marketinrisk
turn is is
the multiplied
risk that by theavalue
risk weight
of ’on applicable to thesheet
‘or ’off’ balance counterparty
positionstowould
arrivebe
atadversely
risk adjusted valueby
affected formovements
calculationinofequity
capitalandto risk-weighted assets ratio
interest rate markets, (CRAR).
currency exchange
rates and commodity prices.
Gross mark to market value means the absolute value of a security or contract or position that reflect its market value arrived in accordance with the agreed methods, subject
to regulatory
Mark to market prescriptions.
(MTM) is a method to assess the fair value of assets or liabilities that can change over time. Mark to market aims to provide a realistic assessment of an
institution's current
Banks are required to financial
adjust bothsituation.
the amount of exposure to a counterparty and the value of any collateral received in support of that counterparty to take account of possible
future
Cash flows mismatches in termsofofeither
fluctuations in the value the buckets
maturity exposureare orcalled
the collateral,
gaps which occasioned by market
lead to liquidity andmovements.
market risk.These
Limitsadjustments
placed on such aregaps
referred to as 'haircuts'.
to restrict liquidity or market risk is called
gap limit.
Cumulative gap is the progressive summation over a sequential periodic buckets of individual net gaps with signs. For example, cumulative gap of bucket 'over 3 months and up
to
Net6 gap
months'
refersisto calculated
summation as cumulative
of individualgap of the bucket
bucket-wise ' 29 days
balance sheetand gapup
andto the
3 months'
total ofplus
othernet gap of the
products withbucket
signs.'over 3 months and up to 6 months'. .
Maximum aggregate gap refers to summation of tenure-wise (time bucket-wise) gaps in foreign currencies ignoring the signs. A limit placed on the aggregate gap is called
maximum
Operational aggregate
risk is thelimit.
risk of loss resulting from inadequate or failed internal processes, people and systems or from external events. It includes legal risk but excludes strategic
and
As per accountingrisk.
reputational standard 5 (AS 5), Extraordinary items are income or expenses that arise from events or transactions that are clearly distinct from the ordinary activities of
the enterprise
Hurdle and,minimum
rate is the therefore, are not expected
acceptable return ontobusiness
recur frequently orthe
activity. In regularly.
context of rating grades, it refers to the rating grade (on the internal master rating scale of the bank)
below
As per accounting standard 5 (AS 5), extraordinary charges are expensescounterparties
which, as per bank’s approved internal policy fresh exposures to that arise fromwill not be
events or undertaken.
transactions that are clearly distinct from the ordinary activities of the
enterprise
Diluted earnings per share is calculated by assuming that everyone who has an instrument that can be from
and, therefore, are not expected to recur frequently or transactions that are clearly distinct the ordinary
converted into an activities of the
equity share, enterprise
converts and,
it into antherefore, areand
equity share notso
expected
the to recur frequently or regularly.
Basictotal number
earnings perofshare
outstanding
is the net shares
profitoforthe
losscompany increases,
for the period thereby to
attributable reducing the shareholders
the equity EPS. For details, please
divided byrefer to accounting
the weighted averagestandard
number20 of
(ASthe
20).
equity shares outstanding
during the period. For details refer to accounting standard 20 (AS 20).
Beta serves as a proxy for the industry-wide relationship between the operational risk loss experience for a given business line and the aggregate level of gross income for that
business line. Banking Statistics II (Including Financial Inclusion)
Benchmark Prime Lending Rate (BPLR) means internal benchmark rate used to determine the interest rates on advances/loans sanctioned by banks during the period from April
2003 to June
External 30, 2010.
benchmark rate means the reference rate which includes:
a) Reserve Bank
The Marginal Cost of of
India
Fundspolicy
basedRepo Rate Rate (MCLR) is an internal benchmark which shall comprise of the following components:
Lending
a) Marginal cost of funds;
Assets with Banking System include
a) balances withCredit
Post-shipment banksmeans
in current
loansaccount, balances
or advances withorbanks
granted and notified
any other financialby
credit provided institutions
a bank toin another accounts,
exporter funds
of goods made
from available
India from thetodate
banking system bycredit
of extending way of loans or
after
deposits
shipmentrepayable
of goods to at the
call date
or short notice of aoffortnight
of realisation or less and
export proceeds andloans otherany
includes than money
loan at call and
or advance shorttonotice
granted made available
an exporter, to the banking
in consideration system;
of, or on and of any duty
the security
drawback allowed by the Government from time to time. Post-shipment advance can mainly take the form of -
Net Demand and Time Liabilities (NDTL) of a bank includes (a) liabilities towards the banking system net of assets with the banking system (as defined in Section 42 of the
Reserve
FollowingBank of India
securities Act,be
shall 1934 for scheduled
considered banks, Securities/
as Approved Small Finance SLRBanks and Payments
Securities : Banks or Section 18 of the Banking Regulation Act, 1949 for non-scheduled banks or
Section
(i) Dated 18securities
of the Banking
of the Regulation Act,
Government of 1949 issued
India read with from Section
time to56time
thereof forthe
non-scheduled co-operative banks); andthe(b) liabilities towards others in the form of demand and
Statutory
time Liquidity
deposits Ratio (SLR)orassets
or borrowings other [for Scheduled Commercial
miscellaneous Banks (Including Regional borrowing
items of liabilities.
under market Rural Banks), programme
Local Areaand Banks, Market Stabilisation
Small Finance Banks Scheme;
and Payments Banks] shall be
maintained by banksshall
Following securities as under:
be considered as Approved Securities/Statutory Liquidity Ratio (SLR) Securities:
Dated securities
Unencumbered approved of the Government
securities or of India issued from
unencumbered time to time
securities includeunder
thethe marketlodged
securities borrowing programme
by the company with and the Market
another Stabilisation
institution for anScheme;
advanceTreasury Bills of
or any other the
credit
Government
arrangement of India;
to the and
extent State Development
to whichto such securitiesLoans (SDLs)
have notof the State Governments issued from time to time under the market borrowing programme. Any other instrument
A ‘wilful
as may be default’
notified would
by the beReserve
deemed Bankhave occurred
of India (As andif any
whenofbeen
the drawn against
following
prescribed). eventsorisavailed
noted: of.
(a)
Any amount due to the bank or regulated entity under any credit facility is ‘overdue’ if iteven
The unit has defaulted in meeting its payment / repayment obligations to the lender is notwhen
paid itonhas
thetheduecapacity to honour
date fixed the said
by the bank obligations.
or regulated entity. The borrower
accounts shall be flagged as overdue as part of day-end processes for the due date, irrespective of the time of running such processes.
A loss asset is one where loss has been identified by the bank/ regulated entity or internal or external auditors or the Reserve Bank of India (RBI) inspection, but the amount has
not been written
Securities Financing off Transactions
wholly. In other words,
(SFTs) such an assetsuch
are transactions is considered
as repurchase uncollectible
agreements,and reverse
of such little value that
repurchase its continuance
agreements, security aslending
a bankable
and asset is not collateralised
borrowing, warranted although
there may be
borrowing and some salvage
lending and or recovery
margin lendingvalue.
transactions, where the value of the transactions depends on market valuations and the transactions are often subject to margin
A central counterparty (CCP) is a clearing house that interposes itself between counterparties to contracts traded in one or more financial markets, becoming the buyer to
agreements.
every seller and the seller to every buyer and thereby ensuring the future performance of open contracts. A CCP becomes counterparty to trades with market participants
A qualifying central counterparty (QCCP) is an entity that is licensed to operate as a CCP (including a license granted by way of confirming an exemption), and is permitted by
through novation,
the appropriate an open/ offer
regulator system,operate
or another legally binding arrangement.
The Basel III leverage ratio isoverseer
defined toas the capital as such
measure with respect
(the to the products
numerator) divided byoffered. This is subject
the exposure measure to the
(theprovision that the
denominator), CCP
with is based
this and prudentially
ratio expressed supervised in
as a percentage.
aThe
jurisdiction
capital where
measure the
for relevant
the regulator/overseer
leverage ratio is the Tier has
1 established,
capital of the and publicly
risk-based indicated that it applies to the CCP onvarious
an ongoing basis,adjustments
domestic rules and regulations that
A
aremeasure
consistent
transitional
of with
the adequacy
the CPSS-IOSCO
arrangements.
of an Principles
entity's
In other words,
capital
theforcapital
resources
Financial
measureMarket in relation to its current liabilities and also in relation to the risks associated with its assets. and
usedInfrastructures.
capital framework, taking into account regulatory /
for the leverage ratio at any particular point in time is the Tier 1 capital measure applying at that time
deductions An the
appropriate
Off-Balance level of
Sheet
under the risk-based capital adequacy
exposures
framework.(i) refer The ensures
toexposure
the that activities
business
measure theforentity has sufficient
theofleverage
a bank capitalgenerally
that should
ratio generally todosupport its the
notfollow activities
involve booking and
accounting that
assets itssubject
net worth
(loans)
value, and theis following:
to taking sufficient
deposits.to Off-balance
absorb adverse sheet
changes innormally
activities the value of its assets
generate without
fees,(EAD)
but produce becoming insolvent.
liabilities or assets that are deferred
Outstanding Exposure at Default for a given over-the counter (OTC) derivativeorcounterparty
contingent and thus, doasnot
is defined theappear
greateron ofthe
zeroinstitution's balance sheet
and the difference between until
or unless
the sum they
of EADs become
across actual
all assets
netting setsor with
liabilities.
the counterparty and the credit valuation adjustment (CVA) for that counterparty which has already been recognised
Netting Set is a group of transactions with a single counterparty that are subject to a legally enforceable bilateral netting arrangement and for which netting is
by the bankfor
recognised as an incurredcapital write-down (i.e., a CVA loss).
Hedging Set is aregulatory
group of risk positions purposes. fromEach transaction
the transactions that
within is not subject
a single to a legally
netting set for enforceable
which only their bilateral netting
balance arrangement
is relevant that is recognised
for determining for
the exposure
regulatory
amount Exposure capital
or Exposure purposes
at Default should be interpreted as its own netting set Riskfor the standardised
purpose of these rules.
Current is the larger of(EAD)
zero,underor thethe Counterparty
market value of aCredit
transaction (CCR)
or portfolio method.
of transactions within a netting set with a counterparty that would be lost
upon thenet
It is the default
differenceof thebetween
counterparty, assuming
the amounts no recovery
payable on the receivable
and amounts value of those in a transactions in bankruptcy.
particular instrument Current exposure
or commodity. It resultsisfrom
oftenthe also called Replacement
existence of a net long
Cost.
or net short position in the particular instrument or commodity.
Foreign currency settlement accounts that a bank maintains with its overseas correspondent banks. These accounts are assets of the domestic bank.
The
It is aaccount
methodbalances of Nostro
for calculating andAccount
controlling are exposure
Nostro Balances.
to market risk. Value at risk (VAR) is a single number (currency amount) which estimates the maximum
expected
Counterparty Credit Risk (CCR) is the risk that horizon
loss of a portfolio over a given time (the holding
the counterparty to aperiod) and atcould
transaction a given confidence
default before level.the final settlement of the transaction's cash flows. An
economic loss would occur if the transactions or portfolio of transactions
Average Yield on Interest Earning Assets = (Yield on Interest Earning Assets / Monthly Average Interest with the counterparty has a positive
Earningeconomic
Assets) * value 100. at the time of default. Unlike a
firm’s exposure to credit risk through a loan, where the exposure to credit risk is unilateral and only the lending bank faces the risk of loss, CCR creates a bilateral
Average
risk of loss:Costthe ofmarket
Funds =value (Costofofthefunds / Monthly
transaction canAverage Funds)
be positive or *negative
100. to either counterparty to the transaction. The market value is uncertain and can vary
Lending to Agriculture includes Farm Credit (Agriculture and Allied Activities), lending for Agriculture Infrastructure and Ancillary Activities.
Ref:
LoansParafor 8agriculture
of Masterinfrastructure
Directions – Priority Sector Lending
are subjected (PSL) – Targets
to an aggregate sanctioned and Classification
limit of ₹100 (RBI/FIDD/2020-21/72
crores per borrower from Master Directions
the banking system. An indicative list of
FIDD.CO.Plan.BC.5/04.09.01/2020-21
eligible activities under Agriculture dated September
Infrastructure includes 04,i)2020
Loans https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=11959
for construction of storage facilities (warehouse, market yards, godowns - updated from
andtosilos) time to
including
An indicative
time). list of eligible activities under Ancillary Services includes (i) Loans for setting up of Agri-clinics and Agri-business centres. (ii) Loans Custom Service
cold
Units storage
managed units/cold storage
by individuals, chains
institutionsdesigned to store
or organisations agriculture
who maintain produce/products,
a fleet irrespective
of tractors,₹bulldozers, of their location.
well-boring ii) Soil
equipment, conservation
threshers, and watershed
combines, etc., and
Loans to
development. individuals
iii)work for educational
Plant tissue culture purposes, including
and agri-biotechnology, vocational courses,
seed production, not exceeding
productionCredit 20 lakh are
of bio-pesticides, considered as
bio-fertiliser, eligible
and for priority
vermiSocieties sector
composting. classification.
undertake
Ref: Para 11farm Masterfor
ofincludes farmers
Directions on contract
– Priority basis.Lending
Sector (iii) Bank loans
(PSL) to Primary
– Targets and Agricultural
Classification Societies (PACS),
(RBI/FIDD/2020-21/72 Farmers’
Master Service
Directions (FSS)iv)
andLoans for
Large-sized
Export
Adivasi credit
Multipurpose pre-shipment
Societies (LAMPS) andfor post-shipment
on-lending export
to credit
agriculture. (excluding
(iv) Loans off-balanceby
sanctioned sheet
banks items).
to Export
Micro credit
Finance is available
Institutions both infor
(MFIs) rupee as wellto
on-lending as in
FIDD.CO.Plan.BC.5/04.09.01/2020-21
foreign currency. Exportfarmers-Loans dated September
credit under agriculture andfarmers04, 2020
Micro, Smallhttps://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=11959
and Self
Medium - updated from time to
Farm
time). Credit - Individual to individual [including Help Enterprises
Groups (SHGs) (MSME)
or Joint sectors are Groups
Liability allowed(JLGs) to be i.e.
classified
groupsasofpriority sector
individual lending
farmers,
(PSL)
providedin the respective
banks maintain categories viz.
disaggregated agriculture
data and MSME.
of such loans] Loans eligible under export credit for PSL classification are indicated below:
Bank loans to Housing sector as per limits prescribed belowandare Proprietorship
eligible for priority firmssector
of farmers, directly engaged in Agriculture and Allied Activities, viz. dairy,
classification:
fishery,
(i) Loans animal
to husbandry,
individuals up poultry,
to ₹ 35 lakhbee-keeping
in metropolitanand sericulture
centres include
(with Crop loans
population of including
ten lakh andloans
above) for traditional/non-traditional
and upsystem
to ₹25under otherplantations,
lakh ina single centres for horticulture and
The Kisan
allied CreditMedium
activities, Card (KCC) and scheme
long-term aimsloans at providing adequate
for agriculture and and
alliedtimely credit(e.g.
activities support from of
purchase theagricultural
banking implements and windowand
machinery with flexible and
developmental
purchase/construction
simplified procedure of
to the a dwelling
farmers unit per
for their family provided
cultivation(MSMEs) the
and other overall
needs cost
such of
as the dwelling
short termof unit
credit in the metropolitan
requirements centre
for cultivation and at other
of crops; centres
Post-harvestdoesexpenses;
not exceed
The definition
₹45 lakh marketing of
and ₹30 lakh micro, small and
respectively. medium
Existing enterprises
individualofhousing will
loans be as
of Urban per Government
Co-operative India
Banks (GoI). Presently,
(UCBs) presently micro
classified enterprise
under is an
priority enterprise
sector where
lending the
(PSL)
Produce
investment inasplant loan;
and Consumption
machinery requirements
or equipment farmer
does (MSMEs)
not exceed household;
₹1be crore Working capital
andGovernment
turnover does for maintenance
not exceed of farm assets and activities allied
₹5 crore. small enterprise is an enterprise where theto agriculture;
The
will definition
continue of micro,
PSL till small
maturity andor medium
repayment.
Investment credit requirement for agriculture and allied activities. enterprises will as per of India (GoI). Presently,
investment
The definition in plant
of micro,and small
machinery or equipment
and medium does (MSMEs)
enterprises not exceed will₹10
becrore
as perand turnover does
Government not (GoI).
of India exceedPresently,
₹50 crore. medium enterprise is an enterprise where
the investment in plant and machinery or equipment does not exceed ₹ 50 crore
Loans to 'Others' category eligible for priority sector classification include (i) the Loans provided directly by banks and turnover does not exceed ₹250 crore.
to individuals and individual members of Self
Help Groups (SHGs) or Joint Liability Groups (JLGs) satisfying the applicable criteria
Priority Sector Lending Certificate (PSLC) enables banks to achieve the priority sector lending (PSL) target and sub-targets (as prescribed in Master Direction on Regulatory
by purchase Framework for Microfinance
of these instruments in the
Loans Directions,
event of shortfall representsdated March
and at the same 14, 2022 https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12256).
time agriculture
incentivise loansthe surplus banks; thereby enhancing lending to the categories (ii) Loans
under not exceeding
priority sector. ₹ 2.00 lakh provided by
PSLC-Agriculture all eligible except loans to Small Farmer (SF)/ Marginal Farmer
banks to SHG/JLG for activities other than agriculture or micro, small and medium enterprise (MSME), viz., loans for meeting social needs, construction or repair (MF) for which separate certificates are available.
Additionally,
PSLC-GeneralPSLC-Agriculture
represents the residual counts towards the achievement
priority sector loans i.e., otherof agriculture
than loanstarget and overall
to agriculture andpriority sector lending
micro enterprises for (PSL)
whichtarget.
separate certificates are available.
Additionally, PSLC -General counts towards achievement of overall priority sector lending (PSL) target.
PSLC-Micro Enterprises represents all priority sector lending (PSL) Loans to Micro Enterprises. Additionally, PSLC-Micro Enterprises counts towards the
achievement of micro-enterprise sub-target and overall PSL target.
PSLC-SF/MF represents all eligible loans to small/marginal farmers. Additionally, PSLC-SF/MF counts towards achievement of SF/MF sub-target, agriculture target
and
Bankoverall
loans uppriority sector
to a limit of ₹lending
30 crore (PSL) target. for purposes like solar based power generators, biomass-based power generators, windmills, micro-hydel
to borrowers
plants
For theand for non-conventional
purpose of computation of energy based public
achievement of theutilities, viz., street
sub-target, Small lighting
and systems and remote village electrification etc., are eligible for Priority Sector
classification.
Marginal For individual
Farmers (SMFs) willhouseholds,
include thethe loan limit is ₹10 lakh per borrower. Ref: Para 14 of Master Directions on Priority Sector Lending (RBI/FIDD/2020-
following:
Bank
21/72 Master Directions FIDD.CO.Plan.BC.5/04.09.01/2020-21 dated September 04,for
loans to social infrastructure sector as per limits prescribed below are eligible priority
2020 sector classification: (i) Bank loans up to a limit of ₹5 crore per
https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=11959-
borrower for setting up schools, drinking water facilities and sanitation facilities including
Priority sector loans to the following borrowers are considered as lending under Weaker Sections category: construction/ refurbishment
(i) Small andofMarginal
household toilets and
Farmers, water village
(ii) Artisans,
improvements
and cottage at household
industries where level, etc. and
individual loans
credit up to
limits do anot
limit of ₹10₹1crore
exceed lakh per
(iii) borrower for building
Beneficiaries under health careSponsored
Government facilities including
Schemes under
such ‘Ayushman
as National Bharat’ in
RuralNon-
Non-Financial
Tier II to Tier Corporations
VI centres. sector
In case includes:
of Urban (a) GovernmentBanks
Co-operative Non-Financial
(UCBs), Departmental/
the above Non-Departmental
limits are applicable Commercial
only in Undertakings
centres having a (NDCUs), (b)of‘NonGovernment
population less than one lakh; (ii)
Livelihood
Financial Mission
Public (NRLM), National
and Private Corporations Urban
Limited Companies’, Livelihood Mission (NULM) and Self Employment Scheme for Rehabilitation of Manual Scavengers
(c) Port Trusts (both public and private) and (d) the Cooperative Non-Credit Societies. The NDCUs would comprise the non-(SRMS) (iv)
Government
Scheduled Non-Financial
Castes and Scheduled Tribesincludes
(v) Beneficiaries of Differential Rate of Interest (DRI) scheme (vi) Self Help Groups (vii) Distressed farmers indebted to
financial Central and State Public Sector Enterprises (CPSEs and SPSEs) and
i. Departmental undertakings of central government such as Railways, Post and Telegraph. the Power Generation/ Transmission/ Distribution Companies/ State Electricity Boards.
Non-Government Non-Financial Corporations consists of
i. Non-Financial companies include companies (not owned bySector
External government) engaged in manufacturing, trading activities, etc. and registered under Companies Acts of 2013 or
before. State managed companies which are not owned but managed by Government are also to be included (e.g., Sick Textile mills whose management are taken over by
External Commercial
Government, Borrowing(ECB)
Indian Iron means
and Steel Company Ltd.,borrowing
etc.). by an eligible resident entity from outside India in accordance with framework decided by the Reserve
Bank in consultation
External Commercial with Lending the (ECL)
Government of India.by a person resident in India to a borrower outside India in accordance with framework decided by the Reserve
means lending
Bank in consultation with the Government
It refers to foreign currency denominated instruments of India. which are issued in accordance with the Issue of Foreign Currency Convertible Bonds (FCCBs) and Ordinary
Shares (Through Depositary Receipt
It refers to foreign currency denominated instruments Mechanism) Scheme, which1993,areas amended
issued from timewith
in accordance to time. Issuance
the Issue of FCCBs
of Foreign shall also
Currency conform toBonds
Exchangeable other applicable
(FCEBs) Scheme,
regulations.
2008, as amendedFurther, fromFCCBstime should
to time.be FCEBs
without are any warrants attached.
exchangeable into equity share of another company, to be called the Offered Company, in any manner, either
Trade Credit (TC) refers to the credit extended by the overseas supplier, bank, financial institution, and other permitted recognised lenders for maturity, as
wholly, or partly
prescribed or on the basis of any equity related warrants goods attached to debt instruments. Issuance of FCEBs shall also conform toof other applicable regulations.
For the purpose of External Commercial Borrowing (ECB) liability-equity ratio, ECB amount will include all outstanding amount of all ECBs (other can
in TC framework, for imports of capital/non-capital permissible under the Foreign Trade Policy of the Government India. TC thanbe INRraised in
any freely convertible
denominated ECBs)rate andforeign currencyone
theinterest,
proposed (FCY) or Indian
(only Rupee.ECB
outstanding Depending
amounts on
inthe
case source of finance,while suchequity
TCs include suppliers’ credit and buyers’ andcredit from
All-in-cost
recognised includes
lenders. of
Suppliers’ creditother
relatesfees, expenses,
to credit charges,into
for imports guarantee
India fees, of
extended
refinancing)
Export Credit
by the Agency
overseas supplier.
will include
(ECA) charges,
Buyers’
the paid-up
whether
credit paidtoincapital
refers foreign
loans
free reserves
for currency
payment or
ofIndian
(including
Rupee (INR)rate the share
but will premium
notof include received
commitmentin foreign currency)
feesExternal as
and withholding per the latest
tax payable audited balance
in INR. In Credit sheet.
the case Both ECB
of fixedrefers and
rate loans, equity
the amounts
swapaccepted will be calculated
cost plusinterbank
spread should with notrespect
be
Benchmark
to thethan
foreign in
equity caseholder. Foreign
Where Currency
there (FCY)
is more Commercial
than Additionally,
one foreign equity Borrowing/Trade
holderCurrency
in the borrowing (ECB/TC)
company, to any
the portion widely
of therelated
share premium rate
inshould or
foreign
more
Alternative the floating
Reference rate (ARR)
Rate plus the applicable
ofthe
6-month spread.
tenor, applicable to thefor Foreign
currency of borrowing. Convertible
Benchmark Bonds rate(FCCBs),
case the
in (ECB)/Trade issue
of Rupee expenses
denominated ECB/TC will not
be the
A designated
exceed 4 per AD
cent Category
of the I Bank
issue size and is bank
in case branch which
of private is designated
placement, these by the External Commercial Borrowing Credit
expenses should not exceed 2 per cent of the issue size. Under Trade Credit (TC) borrower for meeting
prevailing
reporting yield of the
requirements Government
including of India
obtaining securities
a unique of corresponding maturity.
Foreign Equity Holder means (a) direct foreign equityidentification
holder with minimumnumber for
25 ECB/TC
per centfromdirect theequity
Reserve Bank,inexercising
holding the borrowingthe delegated
entity, (b)powers
indirectunderequity the extant
holder
guidelines,
with minimum and indirect
monitoring equity of ECB/TC
holding transactions.
of 51 per cent or (c) group company with common overseas parent.
Convertible Note means an instrument issued by a start-up company acknowledging receipt of money initially as debt, repayable at the option of the holder, or
which is convertible
Depository Receipt means into such number
a foreign of equity
currency shares of that
denominated company,whether
instrument, within alisted
periodonnot anexceeding
international fiveexchange
years from orthe
not,date
issuedof issue of the convertible
by a foreign depository note, in a
upon occurrence
permissible of specified events aseligible
per other terms and conditions agreedto and indicated in the instrument.
Foreign Portfolio Investment is any investment made by a person resident outside India through equity instruments where such investment is lessand
jurisdiction on the back of securities issued or transferred that foreign depository and deposited with a domestic custodian thanincludes
10 per
‘global
cent of depository
the receipt’
postInvestment
issue paid-up as definedcapital in theon Companies Act, 2013.
Foreign Direct (FDI)share
is the investment a fully diluted
through basisinstruments
equity of a listed Indian company
by a person or lessoutside
resident than ten percent
India in an of the paid-up
unlisted Indianvalue of each
company; or series
in 10 perof equity
cent
instrument
or more of a listed
of the postReceipts Indian
issue paid-up company.equity capital on a fully diluted basisofofaadepository
listed Indian company. In case
Indian Depository (IDRs) indicate any instrument in the form receipt created by a an existingdepository
domestic investmentinby a person
India resident outside
and authorised by a
India
company in equity instruments
incorporated of a India
listedmaking
Indian company
an issue offalls todepository
a level below ten percent, of the post issue paid-up equity capital on a fully diluted basis, the
Investment
investment shall Vehicle is anoutside
continue entity
to beregistered
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regulations
the totalframed
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designated for that purpose and shall include (i) Real Estate Investment Trusts (REITs) governed
Sectoral cap is the maximum investment including both foreign investment on a repatriation basis by persons resident outside India in equity instrumentsby the Securities and Exchange Board of India (REITs) Regulations,
of a
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the (InvIts)Liability
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Foreign
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India
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the investee Indian entity.
2000.
Non-Debt Instruments as determined by Central Government by Gazette Notification S.O. 3722 (E) dated October 16, 2019, means the following instruments;
namely: all investments in equity instruments in incorporated
Financial Markets entities: public, private, listed and unlisted; capital participation in Limited Liability Partnership; all
instruments of investment recognised in the Foreign Direct Investment (FDI) policy notified from time to time; investment in units of Alternative Investment
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(the
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instrument
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debentures.
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Complaint means a representation in writing or through other modes alleging deficiency in service i.e., a shortcoming or an inadequacy in any financial service or
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System Participant means a person other than the Reserve Bank and a System Provider, participating in a payment system as defined in the Payment and
Settlement Systems Act,
Internal Ombudsman 2007;
means any person appointed under Clause 5 of the Internal Ombudsman Scheme, 2018, which reads as "a. The Internal Ombudsman shall
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Pre-paid Payment Instruments are issued by an entity for facilitating the purchase of goods and services from that entity only and do not permit
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a physical of goods
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