Home › Circulars › RBI/2005-06/230

CRR/SLR Treatment for CBLO Transactions by Scheduled State Co-operative Banks and Regional Rural Banks

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2005-06/230 · issued 08 Dec 2005 · ~2 min read

Quick answerRBI clarifies that borrowing via CBLO from CCIL (a non-bank) must be included in NDTL for reserve requirements. A special exemption allows SCBs/RRBs to maintain only the statutory minimum CRR of 3% on such borrowings, while SLR remains at 25% on NDTL including CBLO.

What changed

RBI explicitly clarified that CBLO borrowings by Scheduled State Co-operative Banks and Regional Rural Banks from CCIL are to be classified as 'Liability in India to Others' and included in NDTL. A special exemption from full CRR was granted, limiting the requirement to the statutory minimum of 3% on these borrowings to promote CBLO as a money market instrument.

What it means for you

For SCBs and RRBs, this means CBLO borrowings now attract only a 3% CRR instead of the standard rate, reducing the cost of using this instrument. However, SLR at 25% applies fully on NDTL including CBLO. Banks can also count unencumbered securities in their CCIL Gilt Account (CSGL) for SLR compliance, with daily statements from CCIL aiding tracking.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Include all CBLO borrowings from CCIL in your NDTL calculation for reserve requirements.
Maintain only the statutory minimum CRR of 3% on these borrowings, not the full CRR rate.
Ensure SLR of 25% is maintained on total NDTL, including CBLO borrowings.
Reconcile unencumbered securities in your CCIL Gilt Account daily using CCIL's statement for SLR purposes.
Place this circular before your bank's board for information and compliance.

Who it affects

Scheduled State Co-operative Banks (SCBs), Regional Rural Banks (RRBs), Clearing Corporation of India Ltd. (CCIL)

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 19:28 IST
Status change: withdrawn 09 Jul 2026, 04:05 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

Why is CBLO borrowing given a special CRR exemption?

To develop CBLO as a money market instrument, RBI granted SCBs and RRBs an exemption from full CRR on these borrowings, requiring only the statutory minimum of 3%.

How can I use securities in my CCIL Gilt Account for SLR?

Unencumbered securities in your CSGL account with CCIL at end of day can be counted for SLR. CCIL provides a daily statement listing lodged, utilized, and unencumbered securities for this purpose.

Does this circular apply to all cooperative banks?

No, it specifically applies to Scheduled State Co-operative Banks and Regional Rural Banks, not all cooperative banks.

📜 Read the original circular — full text as issued by RBI

RBI/2005-06/230

 RPCD.CO.RF.BC. 53/07.02.01/2005-06 

 December 8, 2005 

 All Scheduled State Co-operative Banks (SCBs) and

 Regional Rural Banks (RRBs) 

 Dear Sir, 

 Maintenance of CRR / SLR on transaction in Collateralised 
 Borrowing and Lending Obligation (CBLO) 

 As you are aware, Reserve Bank of India has 
 been promoting collateralised borrowing/ lending operations by market participants. 

 2. The Clearing Corporation of India Ltd. (CCIL) 
 has developed and introduced with effect from January 20, 2003 a money market 
 instrument called Collateralised Borrowing and Lending Obligation (CBLO). On 
 enquiries received from banks on the treatment of CBLO in regard to maintenance 
 of CRR and SLR, it is clarified that: 

 i. since CCIL is considered as a non-bank institution, 
 borrowing bank should classify its borrowing under CBLO as 'Liability in India 
 to Others', which qualify for reserve requirements. Accordingly, Scheduled SCBs/ 
 RRBs are required to include in their net demand and time liabilities (NDTL), 
 the borrowing under CBLO. However, in order to develop CBLO as a money market 
 instrument, it has been decided to grant Scheduled SCBs/ RRBs a special exemption 
 from CRR prescription subject to the bank maintaining statutory minimum CRR 
 of 3%; 

 ii. the Scheduled SCBs and RRBs are also required 
 to maintain statutory liquidity ratio (SLR) of 25% on NDTL including borrowing 
 through CBLO. Further, securities lodged in the Gilt Account of the bank maintained 
 with CCIL under CSGL facilities remaining unencumbered at the end of any day 
 can be reckoned for SLR purposes by the concerned bank. For this purpose, CCIL 
 will provide a daily statement to banks / RBI listing the securities lodged 
 / utilized / remaining unencumbered. 

 3. The contents of this circular may be placed 
 before the Board of your bank. 

 4. Please acknowledge receipt to our Regional 
 Office concerned. 

 Yours faithfully, 

 (C.S.Murthy)

 Chief General Manager In-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2005-06/230 · issued 08 Dec 2005. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=2658&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.