Question

As of August 2024, the Reserve Bank of India has expanded the scope of its revised instructions on Bad and Doubtful Debt Reserve (BDD

Q: Answer-As of August 2024, the Reserve Bank of India has expanded the scope of its revised instructions on B...

The RBIs revised instructions, effective immediately, encompass Urban Co-operative Banks UCBs, State Cooperative Banks StCBs, and Central Cooperative Banks CCBs. This initiative aims to rectify and facilitate a smoother transition towards compliance with accounting standards AS. The banks are required to recalibrate BDDR balances that were formerly adjusted against net profits, now reclassifying these as direct expenses by 31st March 2025.

A Urban Co-operative Banks
B State Cooperative Banks
C Central Cooperative Banks
R to include which categories of co-operative banks, aiming to standardize the treatment of such reserves for prudent financial management?