Introduction: The Reserve Bank of India, in its Circular No. 10 dated December 22, 2023, addresses the transition of reporting trade credit data for imports into India. This circular specifically outlines the shift from the XBRL platform to the Centralised Information Management System (CIMS) and its implications for Category-I Authorised Dealer Banks.
Detailed Analysis:
1. Background and Context: The circular refers to the earlier directives (Circular No. 75, November 19, 2013, and Circular No. 20, March 13, 2018) related to Trade Credits for imports into India. It highlights the previous mechanism involving the submission of quarterly statements on the issuance of guarantees on the XBRL platform.
2. Shift to CIMS: The pivotal change introduced in Circular No. 10 is the transition of the reporting mechanism from XBRL to the newly launched CIMS. The Centralised Information Management System is described as the Reserve Bank’s next-generation data warehouse. The circular mentions that AD Category I banks are already onboarded on the CIMS platform.
3. Submission Details: Authorised Dealer Category-I banks are instructed to submit the return (assigned return code ‘R131’ on CIMS) exclusively through the CIMS portal (URL: https://sankalan.rbi.org.in/). The circular specifies that the submission through the XBRL site will be discontinued from December 26, 2023.
4. Regulatory Update: The circular emphasizes that the Master Direction – External Commercial Borrowing, Trade Credit, and Structured Obligation dated March 26, 2019, will be updated to reflect the changes introduced. Authorised Dealer banks are urged to communicate these modifications to their constituents.
5. Regulatory Authority: The directions provided in Circular No. 10 are issued under Section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999. It is clarified that these directions do not prejudice any permissions or approvals required under any other law.
Conclusion: The circular from the Reserve Bank of India signifies a strategic move towards leveraging advanced data management systems for more efficient reporting in the banking sector. The transition from XBRL to CIMS streamlines the process of reporting trade credit data, providing a more robust and contemporary framework. Authorised Dealer Category-I banks are expected to adhere to these changes promptly to ensure compliance with the updated regulatory landscape.
RESERVE BANK OF INDIA
RBI/2023-24/96
A.P. (DIR Series) Circular No. 10
December 22, 2023
To
All Category – I Authorised Dealer Banks
Madam/Sir
Trade Credit for imports into India – Submission of return on issuance of bank guarantees for Trade Credits on the Centralised Information Management System (CIMS)
Attention of Authorised Dealer Category – I banks is invited to A.P. (DIR Series) Circular No. 75 November 19, 2013 read with A.P. (DIR Series)Circular No. 20, March 13, 2018 relating to Trade Credits for imports into India and submission of quarterly statement on issuance of guarantees therefor by AD banks on the eXtensible Business Reporting Language (XBRL) platform.
2. With the launch of the Reserve Bank’s next generation data warehouse viz., the Centralised Information Management System (CIMS), it has been decided to shift the arrangement for reporting of quarterly data on issuance of guarantees for trade credits by AD banks, from XBRL platform to CIMS. The statement has been assigned return code- ‘R131’ on CIMS.
3. AD Category I banks have already been onboarded on the CIMS platform and are currently submitting the aforesaid return on XBRL site as well as the CIMS portal. Henceforth, AD Category-I banks shall furnish the return only on the CIMS portal (URL: https://sankalan.rbi.org.in/) as submission of the return through the XBRL site will be discontinued with effect from December 26, 2023.
4. The Master Direction – External Commercial Borrowing, Trade Credit and structured Obligation dated March 26, 2019 (as amended from time to time)shall accordingly be updated to reflect the above changes. AD banks may bring the contents of this circular to the notice of their constituents.
5. The directions contained in this circular have been issued under Section 10(4) and 11(2) of the Foreign Exchange Management Act, 1999 (42 of 1999) and are without prejudice to permissions/approvals, if any, required under any other law.
Yours faithfully,
(Dr Aditya Gaiha)
Chief General Manager-in-Charge
