No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2020-21/43 · issued 29 Sep 2020 · ~1 min read
Quick answerRBI has postponed the Net Stable Funding Ratio (NSFR) guidelines by six months, now effective April 1, 2021, due to COVID-19 uncertainty. Banks get extra time to align funding profiles.
The rule, in the simplest words
NSFR is a rule that makes banks keep enough stable money (like deposits) to cover long-term loans.
The rule was supposed to start earlier, but now it starts on April 1, 2021.
Banks get six more months to prepare.
This applies to big commercial banks, not small local or payment banks.
The reason is the COVID-19 problem, so banks have more time to adjust.
How it plays out — a real example
Ravi, the ALM head at a mid-sized private bank, sees the RBI circular and updates his project plan. He now has until April 2021 to shift some short-term borrowings into longer-term deposits, easing pressure on his funding stability ratio.
What changed
The RBI circular dated September 29, 2020 defers the NSFR implementation by a further six months. The guidelines will now apply from April 1, 2021 instead of the earlier date.
What it means for you
Banks have additional time to adjust their funding structures to meet the NSFR requirement. This provides relief amid COVID-19 stress, allowing more room to manage liquidity without immediate compliance pressure.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review your bank's current NSFR readiness and update implementation timelines to April 1, 2021.
Use the extra six months to fine-tune stable funding sources and reduce reliance on short-term wholesale funding.
Monitor RBI communications for any further changes or clarifications.
Who it affects
All commercial banks (excluding RRBs, LABs, and Payments Banks), Treasury and ALM teams, Risk management and compliance functions
RBI’s words: “defer the implementation of NSFR guidelines by a further period of six months”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #341: DOR.BP.BC.No.16/21.04.098/2020-21 — "Basel III Framework on Liquidity Standards - Net Stable Funding Ratio (NSFR)" dated September 29, 2020”
📜 Read the original circular — full text as issued by RBI
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2020-21/43 · issued 29 Sep 2020. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=11971&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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