What changed
RBI issued a notification on September 4, 2009, stating that Cash Management Bills are now eligible as SLR securities for RRBs. This follows a press release from August 10, 2009, on the issuance of these bills. The bills are treated as Government of India Treasury Bills under a prior notification dated February 14, 2008.
What it means for you
RRBs can now include Cash Management Bills in their SLR holdings, which helps them meet statutory liquidity requirements more flexibly. This expands the pool of eligible securities for SLR compliance, potentially easing liquidity management for these banks.
What you must do
- Update internal SLR compliance systems to include Cash Management Bills as eligible securities.
- Inform treasury and compliance teams about this classification change.
- Monitor RBI press releases for further details on Cash Management Bill issuance.
- Ensure SLR reporting reflects these bills under the correct category.
Who it affects
Regional Rural Banks, Treasury departments of RRBs, Compliance officers at RRBs
What are Cash Management Bills?
Cash Management Bills are short-term instruments issued by the Government of India to manage temporary cash flow mismatches, as per the RBI press release referenced in the notification.
Do these bills count towards SLR for all banks?
This notification specifically applies to Regional Rural Banks. Other bank categories may have separate guidelines.
Which prior notification is referenced?
The notification refers to RPCD.CO.RRB. No. 8483/03.05.28(B)/2007-08 dated February 14, 2008, which defines eligible SLR securities for RRBs.