What changed
This master circular updates the previous July 2011 version by incorporating all CRR/SLR instructions issued up to June 30, 2012. It consolidates existing guidelines without introducing new policy changes. The circular applies to all Scheduled Commercial Banks except Regional Rural Banks.
What it means for you
Banks must continue maintaining CRR at 4.75% of NDTL and SLR as per existing rules. No incremental CRR is currently required. Compliance with statutory returns (Form A for CRR, Form VIII for SLR) remains mandatory. The circular serves as a single reference document for reserve requirements.
What you must do
- Ensure CRR is maintained at 4.75% of NDTL daily, with exemptions as per sections 1.11 and 1.12.
- File Form A (CRR) fortnightly and Form VIII (SLR) as prescribed.
- Verify correct computation of demand and time liabilities, including exemptions.
- Get DTL computation certified by statutory auditors for SLR compliance.
Who it affects
All Scheduled Commercial Banks (excluding RRBs), Treasury and compliance departments, Statutory auditors of banks
What is the current CRR rate as per this circular?
The CRR rate is 4.75% of a bank's net demand and time liabilities (NDTL), effective from the fortnight beginning March 10, 2012.
Are Regional Rural Banks covered by this master circular?
No, this circular explicitly excludes Regional Rural Banks (RRBs). It applies only to all other Scheduled Commercial Banks.
Is there any incremental CRR requirement?
No, as per the circular, no incremental CRR is required to be maintained by banks at present.