What changed
RBI issued a Master Circular (RBI/2008-09/60) that consolidates all currently operative instructions on CRR and SLR for Primary (Urban) Co-operative Banks up to June 30, 2008. This replaces earlier piecemeal circulars and provides a single reference document. The circular does not introduce new requirements but compiles existing ones.
What it means for you
Urban co-operative banks now have a single, authoritative source for all CRR and SLR compliance rules, reducing confusion from multiple circulars. Banks must ensure their systems align with the consolidated guidelines, especially on daily maintenance of statutory reserves and reporting. Non-compliance could attract penalties as specified in the circular.
What you must do
- Review the Master Circular and update internal compliance manuals to reflect consolidated CRR and SLR instructions.
- Ensure daily maintenance of the prescribed register (Annex 8) showing cash reserve and liquid asset positions, with CEO oversight.
- Verify that NDTL calculations for CRR and SLR follow the rules for both scheduled and non-scheduled PCBs.
- Train compliance and treasury teams on the consolidated reporting requirements and penalty provisions.
Who it affects
Primary (Urban) Co-operative Banks (scheduled and non-scheduled), Chief Executive Officers of PCBs, Compliance and treasury departments of PCBs, Regional Offices of RBI's Urban Banks Department
Does this Master Circular introduce new CRR or SLR rates?
No, it consolidates existing instructions up to June 30, 2008. The circular does not change the prescribed CRR or SLR rates; it only compiles them into one document.
Who is responsible for ensuring daily compliance with statutory liquidity requirements?
The chief executive officer of the bank is responsible for ensuring compliance with statutory liquidity requirements at the close of business every day, as per the circular.
What are the key reporting requirements for scheduled PCBs under this circular?
Scheduled PCBs must compute CRR as per Section 42 of the RBI Act, 1934, and submit returns as specified. Non-submission or delayed submission attracts penalties.