On Jul. 1, RUS CB issued guidance on reporting on deposit returns.
RUS CB issued methodological recommendations on formation of indicators in sections 1-4 of reporting form 0409119 "data on maximum return on deposits of individuals".
Key Points
The recommendations aim to standardize the reporting of form 0409119, data on Maximum Deposit Yield for Individuals," as set by ordinance 6406-U, see #169404.
Banks are recommended to calculate the maximum yield on deposits, including any additional material benefits and conditions, for deposits subject to mandatory insurance under law 177-FZ from on Insurance of Deposits in Banks of the Russia.
The calculation is based on the terms of bank account agreements made or modified in the reporting month, including those certified by a savings book or savings certificate.
The full cost of the deposit should be calculated based on the conditions stipulated in the bank agreement any other agreements that foresee income for the depositor, except in cases where agreement’s conditions do not alter the full cost of the deposit.
If the conditions of a deposit agreement change without affecting the full cost of the deposit, or if it is extended on demand deposit terms, full cost is not recalculated.
In addition, conditions that involve payments or discounts provided by the bank or third parties to the depositor for purchasing goods or services with funds from the deposit should not be included in the calculation of the full deposit costs.
For multi-currency deposit agreements, the full cost of the deposit should be calculated separately for each currency as per form 0409119, using the official exchange rate set.
If, upon early withdrawal, the deposit retains the agreed interest rate (or changes by less than one-third of the rate) or the material income remains (or changes by no less than one-third), full cost of the deposit should be calculated separately for each period.
Effectiveness
The recommendations will be applied from on May 8, 2024, until Dec. 31, 2024.
Regulators
RUS CB
Entity Types
Bank; BHC; CNSM; CU
Reference
Gd, 7/1/2024; Rec 12-MR, 6/28/2024
Functions
Financial; Record Retention; Reporting; Risk; Treasury; Underwriting
