What changed
This master circular updates the previous version from September 18, 2009, incorporating all instructions issued up to June 30, 2010. It consolidates the CRR rate (6.00% effective April 24, 2010) and SLR requirements into one document. The circular also clarifies the computation of demand and time liabilities, exemptions, and penalties for non-compliance.
What it means for you
Banks must ensure their CRR and SLR calculations align with the updated definitions and exemptions in this circular. The 6.00% CRR rate impacts liquidity management, and daily maintenance requirements increase operational discipline. Non-compliance attracts penalties, so accurate reporting in Form A (CRR) and Form VIII (SLR) is critical.
What you must do
- Update internal systems to reflect the 6.00% CRR rate effective April 24, 2010, and ensure daily maintenance compliance.
- Review and adjust computation of demand and time liabilities per the circular's definitions, including exemptions.
- Submit Form A (CRR) fortnightly and Form VIII (SLR) as prescribed, with statutory auditor certification for SLR.
- Train treasury and compliance teams on the updated master circular to avoid penalties for shortfalls.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Treasury departments managing CRR and SLR compliance, Compliance and reporting teams handling statutory returns, Statutory auditors certifying SLR computations
What is the current CRR rate under this master circular?
The CRR is prescribed at 6.00% of a bank's net demand and time liabilities, effective from the fortnight beginning April 24, 2010.
Are Regional Rural Banks covered by this circular?
No, this master circular applies to all Scheduled Commercial Banks excluding Regional Rural Banks.
What are the penalties for non-compliance with CRR or SLR?
The circular specifies penalties for shortfalls in maintaining CRR and SLR, as per Section 42 of the RBI Act and Section 24 of the Banking Regulation Act, respectively. Banks must refer to the detailed penalty provisions in the circular.