What changed
The NSFR guidelines, originally set to take effect from October 1, 2020, have been postponed by six months. The new effective date is April 1, 2021.
What it means for you
Banks have additional breathing room to adjust their funding structures without immediate NSFR compliance pressure. This deferral helps lenders manage liquidity amid pandemic disruptions, but they must use this time to prepare for the stricter norms.
What you must do
- Review your bank's current stable funding position against NSFR requirements.
- Adjust funding strategies to ensure compliance by the new deadline of April 1, 2021.
- Monitor RBI updates for any further changes to the timeline.
Who it affects
All commercial banks (excluding RRBs, LABs, and Payments Banks)
Why did RBI defer NSFR implementation?
Due to continued uncertainty from COVID-19, RBI decided to give banks more time to prepare.
What is the new effective date for NSFR?
The guidelines will now come into effect from April 1, 2021.