NBFC

All you need to know about XBRL Returns for NBFCs

XBRL means e-xtensible business reporting language for the electronic communication of business and financial data, which is revolutionizing business reporting across the globe. The Reserve Bank of India mandated all NBFCs to file NBFC returns in XBRL mode beginning from FY 19-20. In this article, we will discuss filing of XBRL returns for NBFC.

Benefits of XBRL

XBRL provides various benefits at all steps of business reporting and analysis. The advantages can be witnessed in:

• Automation;
• Cost-saving;
• Reliability;
• Faster;
• Accurate handling of data
• Improved analysis;
• Better quality of information and decision making.

Moreover, XBRL helps producers and consumers of financial data to switch resources away from the manual process which is costly. They can concentrate effort on analysis with the help of software that can validate and process XBRL info. It is a flexible language with an aim to support all present aspects of reporting in various countries and industries. The extensible nature allows it to meet special business requirements, even at the individual organizational level.

Applicability of XBRL returns for NBFCs

It is applicable to NBFCs even if assets size is 2 crore. There are various types of XBRL return which are filed by different NBFCs falling under different assets size.

TYPE OF XBRL RETURN	ASSETS SIZE
DNBS- 02 (Important Financial Parameters)	For NBFCs with below 100 crore assets size
DNBS- 10 (Statutory Auditor Certificate)
DNBS- 13(Overseas Investment Detail)
DNBS- 02 (Important Financial Parameters)	For NBFCs with more than 100 crore and less than 500 crore assets size
DNBS- 10 (Statutory Auditor Certificate)
DNBS- 13(Overseas Investment Detail)
DNBS- 4A (Short Term Dynamic Liquidity)
DNBS- 4B (Structural Liquidity and interest rate sensitivity)
DNBS- 02 (Important Financial Parameters)	Small NBFCs with assets size of 2/5 crore
DNBS- 10 (Statutory Auditor Certificate)
DNBS- 13(Overseas Investment Detail)

Login Id and password for filing XBRL returns for NBFCs

NBFCs need to obtain login ID and password from the reserve bank. NBFCs needs to create maker and checker login ID and password to file NBFC return. An automated email will be sent to the maker and checker. NBFCs should also create the statutory auditor ID in the XBRL system. Once the statutory auditor ID is made, an automated email will be sent to the statutory auditor through the XBRL system by which the auditor must upload DNBS 10 return.

Due date for filing XBRL returns for NBFCs

The XBRL return should be filed within the prescribed period of submission. Below we have discussed the due dates.

• DNBS 02– This return has to be filed annually, and the timeline for submission is 60 days from the end of the Financial year.
• DNBS 04A– This is a quarterly return which is filed 15 days from the end of the quarter.
• DNBS 04B– This is a monthly return which is filed 10 days from the end of the month.
• DNBS 10– This is an annual return and is filed one month from the date of finalization of the balance sheet but not later than December 31.
• DNBS 13– This is a quarterly return which is filed 15 days from the end of the quarter.

Essential points regarding XBRL Return

The following points should be considered before filing the return:

• All ND-NSI category NBFCs need to file appropriate returns under both systems (COSMOS and XBRL portal) pertaining to the period ending 31 March 2020.
• The Reserve Bank of India has decided to discontinue online filing of return by ND-NSI category of NBFCs with asset size of less than 500 crore rupees from March 2021 in the COSMOS system and operate only XBRL system as solo online return reporting system.
• NBFCs should get them registered on XBRL platform and provide the contact details as well as other details of the KMPs of the company in the prescribed format by the RBI. NBFCs should communicate with the RBI, especially department of Non-banking supervision through their official mail ID for Super User ID creation and to facilitate the access to the new platform. Once the login credentials is received, open the link- https://xbrl.rbi.org.in to access the portal.
• NBFCs should make statutory auditor ID in the XBRL system once it gets the access to the XBRL portal. Once the statutory auditor user ID is made automated email will be sent to the statutory auditor by the XBRL system for the authentication of submission of the DNBS 10 return.
• NBFCs should file DNBS 13 return even in case of NIL Overseas Investment.

Conclusion

Different XBRL Returns shall apply to different NBFCs as per their assets size. The XBRL returns for NBFC should be filed within the prescribed period of submission. The use of XBRL is revolutionizing business reporting across the globe.

Read our article:Significance of NBFC Registration in the Indian Financial Market