| S. No. |
Data Elements |
Harmonised Definitions |
| Off-Balance Sheet Items |
| 1 |
Claims not Acknowledged as Debts |
Claims not acknowledged as debt represent present obligations that arise from past events or transactions but are not recognised due to the fact that either it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligations, or a reliable estimate of the amount of obligations cannot be made. |
| 2 |
Bank Guarantee |
Financial and performance guarantees issued by banks on behalf of their clients. A financial guarantee assures payment of money in the event of non-fulfilment of contractual obligations by the client. A performance guarantee provides assurance of compensation if there is delayed or inadequate performance on a contract. A deferred payment guarantee assures payment of instalments due to a supplier of goods. |
| 3 |
Letter of Credit (LC) |
Any arrangement how so ever named or described, that is irrevocable and thereby constitutes a definite undertaking of the issuing bank to honour a complying presentation. An LC confirmed by a bank based and operating in another country is payable by the confirming bank. |
| 4 |
Acceptances Endorsements and other Obligations |
This item will include Letters of Credit to which the bank has added its confirmation, bills accepted/ co-accepted and such other items that have the character of acceptance. These are to be reported on gross basis. Acceptance is the drawee’s acknowledgement of the liability on bills of exchange, in writing on the instrument itself. A bill may also bear a co-acceptance by a bank, which is guaranteed to honour, the instrument in the event of default by the drawee. |
| 5 |
Committed Lines of Credit |
A commitment to provide credit under pre-specified terms and conditions. |
| 6 |
Bills Rediscounted DUPN (Derivative Usance Promissory Note) |
Negotiable instruments drawn by banks for suitable maturities up to 90 days on the strength of underlying commercial bills discounted by the banks’ respective branches. Through this instrument, the underlying commercial bills can be rediscounted multiple times (through secondary market) with other banks and approved financial institutions. The minimum rediscounting period is 15 days. |
| 7 |
Liability on Account of Outstanding Forward Foreign Exchange Contracts |
Higher of sum of negative mark to market (MTM) amounts of contracts having negative MTM and exposure amount computed as per current exposure method for computing default risk capital charge. |
| 8 |
Current credit exposure |
The sum of the positive mark-to-market value of market related off-balance sheet transactions. |
| 9 |
Potential Future Credit Exposure |
Potential future credit exposure is determined by multiplying the notional principal amount of each of the underlying contracts irrespective of whether the contract has a zero, positive or negative mark-to-market value by the relevant add-on factor prescribed by RBI, according to the nature and residual maturity of the instrument. However, in the case of CDS contracts, the protection seller's exposure on protection buyer cannot exceed the amount of the premium unpaid. |
| 10 |
Credit Equivalent Amount |
The credit equivalent amount in relation to a non-market related off-balance sheet item is determined by multiplying the contracted amount of that particular transaction by the relevant credit conversion factor. The credit equivalent amount of a market related off-balance sheet transaction is calculated using the Current Exposure Method and is the sum of current credit exposure and potential future credit exposure of these contracts. |
| 11 |
Current Exposure Method |
Current Exposure Method is used to calculate the exposure amount for the purpose of computing default risk capital charge for counterparty credit risk. |
| 12 |
Contingent Credit Exposures |
Possible credit exposure that may arise in the future depending on the occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the bank. |
| 13 |
Bills for collection |
Bills held by a bank for collection on behalf of its customers. These bills are generally bills of exchange accompanied by documents of title to goods. |
| 14 |
PV01/ Price value basis point |
Measures the change in market value of the security/ derivative contract on account of one basis point change in the yield. |