RBI monetary policy review: IndAS implementation deferred by a year

After allowing banks to spread mark-to-market (MTM) provisioning over up to four quarters on Monday, the Reserve Bank of India (RBI) gave another relief to the banks by delaying the implementation of Indian Accounting Standards (IndAS) by one year, to April 2019.

The RBI said some necessary legislative amendments, such as making the financial statements' format compatible with IndAS accounting, are under consideration, and keeping in mind the level of preparedness of many banks, the implementation is deferred. The move will help lower provisioning burden of the banks.  

In IndAS, a new method of ascertaining NPAs (non-performing assets or bad loans)