RBI seeks Comments on Draft Guidelines on Uniform Accounting for Repo/Reverse Repo Transactions - आरबीआय - Reserve Bank of India
RBI seeks Comments on Draft Guidelines on Uniform Accounting for Repo/Reverse Repo Transactions
The Reserve Bank of India has today placed on its website 'Draft Guidelines for Accounting for Repo/Reverse Repo Transactions' for comments/views. Comments/views on the draft guidelines may, by December 15, 2008, be sent to the Chief General Manager, Internal Debt Management Department, Reserve Bank of India, Mumbai 400001 or can be emailed. The proposed draft guidelines seek to revise the guidelines issued in March 2003 which treated 'repo' as a combination of two independent sale/purchase transactions as per the legal provisions prevailing then. The Reserve Bank of India (Amendment) Act 2006 subsequently defined 'repo' as 'an instrument for borrowing funds by selling securities with an agreement to repurchase the securities on a mutually agreed future date at an agreed price which includes interest for the funds borrowed'. The accounting norms now propose to capture the economic essence of 'repo' as a collateralised lending/ borrowing transaction that is structured as a legal sale / purchase of securities as recognised by the RBI (Amendment) Act, 2006. The amendment in the accounting norms would bring such transactions on to the balance sheet of the repo participants in its true economic sense, thus enhancing transparency. The salient features of the revised draft guidelines are:
The Reserve Bank of India will finalise and issue the guidelines after examining the views / feedback received. Alpana Killawala Press Release : 2008-2009/689 |