The Reserve Bank of India (RBI) is working to broaden the scope of the Consolidated Account Statement (CAS), which could eventually allow investors to view their bank deposits, mutual funds, shares and other securities through a single statement.
The proposed change could make it easier for individuals and families to keep track of their overall financial holdings, reconcile investment-related tax information and identify accounts or deposits they may have forgotten about.
RBI Governor Sanjay Malhotra said on Wednesday that the central bank was facilitating Sebi-regulated depositories to incorporate information relating to deposit accounts into the CAS. The initiative is expected to be implemented by December 31, 2026.
A Single View of Financial Assets
At present, investors may have fixed deposits with multiple banks, mutual funds spread across different fund houses and shares held through demat accounts. Tracking all these investments separately can make it difficult to get a complete picture of one’s financial position.
Adding deposit information to CAS could bring these holdings together, allowing investors to see their exposure to equities, mutual funds, debt and bank deposits in one place.
For households that maintain fixed deposits with several banks, the expanded statement could make regular portfolio tracking considerably simpler.
Easier Tax Checks and Nomination Review
The proposed expansion could also help investors cross-check income from bank deposits while preparing their tax returns. Interest earned on fixed deposits and other deposits forms part of taxable income, and tracking interest from multiple banks can sometimes be difficult.
A consolidated view could help investors compare their deposit interest with information available through Form 26AS and the Annual Information Statement (AIS). However, CAS would remain an additional reconciliation tool and would not replace either Form 26AS or AIS.
The inclusion of deposit information could also make it easier to review nomination details. CAS already shows nomination status for investments covered under the existing framework. If bank deposits are added, customers may be able to identify whether nomination information has been recorded for their fixed deposits.
A nominee, however, does not automatically become the legal owner of an FD simply because their name has been registered as a nominee. Nomination can help facilitate the settlement or transfer process after the account holder’s death.
Portfolio Review and Identifying Unknown Accounts
Having bank deposits and market investments presented together could also help investors review their asset allocation. For example, someone may discover that a large portion of their savings is held in fixed deposits while their equity exposure is comparatively low, or the other way around.
A consolidated statement could therefore provide a broader view of how financial assets are distributed instead of requiring investors to examine each investment separately.
The expanded CAS could also help identify unfamiliar financial accounts or deposits. If a statement contains an account or holding that the investor does not recognise, it could prompt them to check whether the entry is due to an old record, an error or potentially unauthorised activity.
Several important details, however, are still pending. The RBI’s reference to “deposit accounts” does not yet clarify whether the proposed framework will cover only fixed deposits or also include savings accounts and other types of deposits.
Further details regarding coverage, customer consent, privacy safeguards and participating banks will depend on the final implementation framework.
The RBI’s proposal could ultimately give households a more complete picture of their financial assets by bringing bank deposits closer to the existing CAS structure. If implemented as planned, the expanded statement could make it easier to track investments, review portfolios and reconcile financial information from different sources.