What changed
The NSFR guidelines, originally set for April 1, 2021, have been postponed to October 1, 2021. This follows a previous deferral from an earlier date due to the pandemic.
What it means for you
Banks have additional breathing room to adjust their stable funding requirements without immediate compliance pressure. This extension helps manage liquidity amid ongoing economic uncertainty, but banks should continue preparations to meet the new deadline.
What you must do
- Update internal compliance timelines to reflect the new NSFR effective date of October 1, 2021.
- Continue monitoring and adjusting asset-liability mismatches to ensure stable funding ratios are met by the deadline.
- Communicate the revised timeline to relevant treasury and risk management teams.
- Review any interim liquidity stress scenarios to avoid last-minute adjustments.
Who it affects
All commercial banks (excluding RRBs, LABs, and Payments Banks), Treasury and risk management departments, Compliance and regulatory reporting teams
Why was NSFR implementation deferred again?
The deferral is due to ongoing stress from COVID-19, giving banks more time to prepare without immediate compliance pressure.
What is the new effective date for NSFR?
The NSFR guidelines will now come into effect from October 1, 2021.
Which banks are covered by this circular?
All commercial banks except Regional Rural Banks, Local Area Banks, and Payments Banks.