Reporting in Form ‘A’ Return: Reverse Repo Transactions

The Reserve Bank of India (RBI) had issued a circular bearing reference number RBI/2023-24/68 DoR.RET.REC.43/12.01.001/2023-24, on October 16, 2023. The circular provided instructions to ensure consistent reporting of Reverse Repo transactions in the Form A Return by various banks.

Thereafter, after conducting a review, it has been determined that the instructions provided in Paragraph B of the aforementioned circular need to be revised. Accordingly, RBI has issued a circular dated 22 December 2023 wherein it stated that when a bank engages in Reverse Repo transactions with non-banks (other institutions), the reporting should be done as follows:

For original tenors up to and inclusive of 14 days – Not required to be reported in Form A.

For original tenors more than 14 days – Item VI(a) of Form A [i.e. Loans, cash credits and overdrafts under Bank Credit in India (excluding inter-bank advances)]

All instructions mentioned in the circular dated October 16, 2023, apart from those mentioned above, remain the same.

This circular shall apply to all commercial banks.