SCHEDULE 5

OTHER LIABILITIES AND PROVISIONS

Guidelines of RBI for Compilation of Financial Statements

Other Liabilities and Provisions (Schedule 5)

• Bills Payable : Includes drafts, telegraphic transfers, traveller cheques, mail transfers payable, pay slips, bankers cheques and other miscellaneous items.
  
  
• Inter-office Adjustments : The inter-office adjustments balance, if the credit should be shown under this head. Only net position of inter-office accounts, inland as well as foreign, should be shown here.
  
  
• Interest Accrued : Includes interest accrued but not due on deposits and borrowings.
  
  
• Others (including provisions) : Includes net provision for income tax and other taxes like interest tax (less advance payment, tax deducted at source, etc.) surplus in aggregate in provisions for Bad Debts Provision Account, surplus in aggregate in provisions for depreciation in securities, contingency funds which are not disclosed as reserves but are actually in the nature of reserves, proposed dividend/transfer to Government, other liabilities which are not disclosed under any of the major head such as unclaimed dividend, provisions and fund kept for specific purpose, unexpired discount, outstanding charges like rent, conveyance, etc. Certain types of deposits like staff security deposits, margin deposits, etc., where the repayment is not free, should also be included under this head.
  

Notes : General

• For arriving at the net balance of inter-office adjustments all connected inter-office accounts should be aggregated and the net balance should only be shown, representing mostly items in transit and unadjusted items.
  
  
• the interest accruing on all deposits, whether the payment is due or not, should be treated as a liability.
  
  
• it is proposed to show only pure deposits under the head 'deposits', and hence, all surplus provisions for bad and doubtful debts, contingency funds, secret reserves, etc., which are not netted off against the relative assets, should be brought under the head 'others' (including provisions).