In order to reduce the reporting burden on banks, they will soon be required to submit only two quarterly BSR (Basic Statistical Return) reports on credit and deposits effective March 2023, according to Reserve Bank of India Deputy Governor Michael Patra.
“BSRs 3, 4, 5, 6 and 8 have been discontinued. As a part of further rationalisation to reduce the reporting burden on banks, we also plan to discontinue the quarterly BSR 7 reporting from March 2023. This will leave us with only two BSRs, viz., BSR 1 on credit and BSR 2 on deposits, both of quarterly frequency,” said Patra.
Regional rural banks will continue to report at an annual frequency,” he added. The comments were part of an address titled ‘Fifty Years of Indian Banking Through the Lens of Basic Statistical Returns’ at the ‘BSR@50’ conference organised by RBI on Friday.
One of the important aspects of BSR is the BSR Code--a seven-digit code assigned to commercial banks. The code is used to identify the bank, the specific branch, and help maintain a track record of all transactions.
Way forward for BSR
Patra said that the BSR system has become a sound and comprehensive reporting system, generating a wide array of useful statistics, and has supported the post-nationalisation expansion of the banking system, and has led to increased focus on financial inclusion by tracking the growing bank branch network and the access of the public to banking services.
Over the years there have been several modifications in the BSR system in terms of coverage, periodicity, granularity and reference dates, he said.
He added that now the “impetus for transformation has come calling” for India as it prepares to be among the fastest growing economies and an engine of global growth--being the second largest contributor to global growth in 2022.
He expects India to match Germany and become the fourth largest economy by 2025-26, and surpass Japan and emerge as the third largest economy by 2027.
“Banks will have a critical role in this transformation. Information will be the plumbing in this evolving architecture. As we consolidate the gains of the past and move ahead to address new challenges, it is going to be up to us — all stakeholders — to keep the BSR system robust, timely, comprehensive and open to change,” he said.