Q. Consider the following statements:
I. The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).
II. In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.
Which of the statements given above is/are correct?
(a) I only
(b) II only
(c) Both I and II
(d) Neither I nor II
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Answer & Explanation:
✅Correct Answer: (b) II only.
🔹 Statement I: “The Reserve Bank of India mandates all the listed companies in India to submit a Business Responsibility and Sustainability Report (BRSR).”
This statement is incorrect.
The mandate to submit BRSR reports does not come from the Reserve Bank of India (RBI). Instead, it comes from the Securities and Exchange Board of India (SEBI). SEBI is the regulatory body responsible for regulating the securities market and listed companies in India.
In May 2021, SEBI introduced the BRSR framework to replace the earlier Business Responsibility Report (BRR). It made BRSR mandatory from FY 2022–23 for the top 1000 listed companies (by market capitalization). This framework aims to enhance transparency and provide stakeholders with non-financial data on ESG parameters.
So, this statement wrongly attributes the mandate to RBI instead of SEBI, making it incorrect.
🔹 Statement II: “In India, a company submitting a BRSR makes disclosures in the report that are largely non-financial in nature.”
This statement is correct.
The BRSR format focuses on non-financial disclosures. It requires companies to report on various ESG-related parameters such as:
- Environmental impact (energy use, water consumption, waste management)
- Social factors (employee well-being, human rights, gender diversity)
- Governance (business ethics, transparency, CSR activities)
These disclosures aim to promote responsible business conduct and allow investors and stakeholders to make informed decisions beyond financial performance.
Thus, Statement II correctly describes the nature of BRSR disclosures.
✅ Final Conclusion:
- Statement I is incorrect (RBI does not mandate BRSR).
- Statement II is correct (BRSR involves non-financial disclosures).
Hence, the correct answer is (b) II only.