Fifty Years of Indian Banking Through the Lens of Basic Statistical Returns –‘BSR@50’
- November 1, 2022
- Posted by: OptimizeIAS Team
- Category: DPN Topics
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Fifty Years of Indian Banking Through the Lens of Basic Statistical Returns –‘BSR@50’
Subject: Economy
Context:
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 the Reserve Bank of India Deputy Governor.
Details:
- This will leave us with only two BSRs, viz., BSR 1 on credit and BSR 2 on deposits, both of quarterly frequency.
Basic Statistical Return:
- Given the need for more determined effort at systematizing the reporting of comprehensive banking data with a minimum time lag, the RBI constituted the Committee on Banking Statistics in April 1972 to look into various aspects of statistical reporting of data by banks and suggest appropriate steps.
- The BSR system is a sound and comprehensive reporting system, generating useful statistics, and has supported the post-nationalisation expansion of the banking system.
- BSR Code–Basic Statistical Return Code (BSR Code) is a seven-digit code given by the Reserve Bank of India to all the registered banks in India. The first three digits out of the seven represent the bank whereas the remaining four digits represent the branch.
- BSR Codes are used mainly when filing Tax Deduction at Source (TDS) and Tax Collected at Source (TCS) returns.This code is used to maintain records of the online payments and alerts the Income Tax department about the payment through banks.
- Classification of Codes
- BSR 1-This is applicable to the half-yearly Returns on Advances from all branches of the bank on the last Friday of June and December. It is in two parts; Part I is for accounts with limits over Rs.10,000 and Part II is for accounts with limits below Rs.10,000.
- BSR 2-This is applicable to the half-yearly Return Deposits to all bank branches on the last Friday of June and December.
- BSR 3-This is applicable to the monthly Return Advances against the Security of Selected Sensitive Commodities from Head Offices on last Friday of every month.
- BSR 4-This is applicable once in every two months for the Return on Ownership of Bank Deposits from all branches on the last Friday of March.
- BSR 5-This is applicable to the annual Return on Bank Investments from the Head Office on the last day of March.
- BSR 6 –This is applicable for the Quinquennial Survey on Debits to Deposits Accounts from April to March.
- BSR 7-This is done quarterly and is applicable for the Survey on Aggregate Deposits and Gross Bank Credit by head offices of the bank on the last Friday of June, September, and December, and on March 31.
Uses of BSR Codes
There are three important merits of BSR Codes and they are as follows.
- BSR Codes assists the international tax authorities to track the payment made by an individual to a foreign country.
- BSR Codes enables the senior citizens to receive pensions earlier and also gathers all details of a bank branch.
- BSR codes are used by the Income Tax Department to receive and gather information and record taxes that are paid through the banks and upload the challan details.
Other terms:
What is a Challan Identification Number?
- A serial number given by the Reserve Bank of India will be applied for all challans which will be tendered in cash, transfer cheques and clearing cheques as well.
- The Challan Identification Number is a part of the BSR code given by the Reserve Bank of India to all registered banks in the country. The CIN is a 20-digit unique code which is given on the counterfoil of the taxpayer. The BSR code comes with the CIN number and is used as a unique combination along with the challan number and the payment deposited date.
What is the difference between IFSC code and BSR code?
The only difference between the IFSC code and the BSR code is that the IFSC code is an 11-digit code whereas a BSR code consists of only 7 digits. However, their major purpose is the same as giving a unique identity to the bank.