XBRL Returns Applicability to ND-NSI Category of NBFCs

All the commercial banks, financial institutions, authorised foreign exchange dealers and non-banking financial institutions are required to file returns. These return formats are controlled by RBI.RBI seeks data in specified and uniform formats. These days the prescribed return format is eXtensible Business Reporting Language (XBRL). In this article we will discuss the applicability of XBRL Returns to ND-NSI NBFC.
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What is ND-NSI NBFC?
NBFC stands for Non-Banking Finance Company. These NBFCs are further divided into several categories. Among these categories is a category ND-NSI. It stands for Non deposit taking, Non-Systematically Important NBFC.
These are the NBFCs which have total assets less than Rs.500 crore. These entities have less compliances as well as regulations from RBI. The criteria applicable to these NBFCs for asset ageing and categorisation are rather simple. ND-NSI need not maintain certain ratios and are having other relaxations also.
XBRL returns applicable to ND-NSI NBFC
As mentioned earlier RBI has made it mandatory to file returns/reports in XBRL format. Same is applicable on ND-NSI also. In this section we will discuss the returns that has to be filed by ND-NSI.
The criteria is separate on the basis of Asset Size of the company. These are the returns:-
| Where Asset Size is less than Rs.100 crores | ||
| Name of Return Form | Particulars of Return | Details |
| DNBS 02 | Important Financial Parameters | NBFC should file the return annually within 60 days. |
| DNBS 10 | Certificate from Statutory Auditor | Statutory Auditor should file this return annually after accounts are finalised. The return should be filed within 1 month and not later than 31st December. |
| DNBS 13 | Overseas Investment Details | NBFC has to file this return quarterly within 15 days. |
| Where Asset Size is Between Rs.100 crore- Rs.500 crore | ||
| Name of Return Form | Particulars of Return | Details |
| DNBS 02 | Important Financial Parameters | NBFC should file the return annually within 60 days. |
| DNBS 10 | Certificate from Statutory Auditor | Statutory Auditor should file this return annually after accounts are finalised. The return should be filed within 1 month and not later than 31st December. |
| DNBS 13 | Overseas Investment Details | NBFC has to file this return quarterly within 15 days. |
| DNBS 04A | Short Term Dynamic Liquidity(STDL) | NBFC has to file this return quarterly within 15 days |
| DNBS 04B | Structural Liquidity and Interest Rate Sensitivity | NBFC has to file this return monthly within 10 days |
Benefits of XBRL returns to ND-NSI NBFC
The main benefits of XBRL returns to ND-NSI NBFC are:-
- It provides comprehensive information about each and every part of data.
- There is consistency in terms of data. Therefore, it is easy to validate and compare the data.
- The data is rationalised and there is rare chance of duplication in data.
- XBRL is a uniform reporting system and helps RBI to do the analysis in a better way.
XBRL is a much advanced than ORFS i.e. (Online Return Filing System). Just like its name XBRL returns provide reports regarding business in a very compact yet extensive detailed manner.
Relevant points for ND-NSI NBFC
The other points relevant for ND-NSI NBFC are:-
- RBI has decided to go ahead with only XBRL format for filing of returns by ND-NSI.
- Filing of DNBS-13 is mandatory even if it is a Nil Report.
- The NBFC should make sure to furnish all the necessary details along with the returns. The details like key managerial personnel and email id details should be furnished.
- The log in ID should be created for both for company and statutory auditors.
Conclusion
The NBFCs have evolved a great deal these days. RBI also exercises a good control on these NBFCs. The return filing is an important aspect of any business. In case of Banking and financial sector all reporting is done to RBI. RBI in turn has to do various analysis and reporting as it is the central bank of the country. XBRL returns in such time gives uniformity to the data across the sector. That is the reason that XBRL are made mandatory. NBFC-ND-NSI are small scale NBFCs, but still XBRL is made mandatory to them, this itself explains its importance.
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