What changed
This master circular updates the previous version from July 2012 by incorporating all CRR and SLR instructions issued up to June 30, 2013. It consolidates the existing framework without introducing new policy changes. The document serves as a single reference point for compliance.
What it means for you
Banks must continue maintaining CRR at 4% of NDTL and SLR as per existing rules, with no change in rates or computation methods. The circular reinforces the importance of accurate DTL reporting and timely submission of Form A (CRR) and Form VIII (SLR) returns. Non-compliance attracts penalties under the RBI Act and Banking Regulation Act.
What you must do
- Ensure CRR maintenance at 4% of NDTL on a daily average basis each fortnight.
- Submit Form A (CRR) and Form VIII (SLR) returns accurately and on time.
- Verify DTL computation excludes exempted categories as per paragraphs 1.11 and 1.12.
- Get DTL computation certified by statutory auditors for correctness.
Who it affects
All Scheduled Commercial Banks (excluding Regional Rural Banks), Treasury and compliance departments of banks, Statutory auditors of banks
What is the current CRR rate as per this master circular?
The CRR rate is 4.00% of a bank's net demand and time liabilities (NDTL), effective from the fortnight beginning February 9, 2013.
Are Regional Rural Banks covered under this circular?
No, this master circular applies only to all Scheduled Commercial Banks, excluding Regional Rural Banks.
What happens if a bank fails to maintain the required CRR or SLR?
Penalties are prescribed under Section 42 of the RBI Act, 1934 for CRR and Section 24 of the Banking Regulation Act, 1949 for SLR non-compliance.