Current · Source: Reserve Bank of India · RBI/2022-23/132 · issued 13 Oct 2022 · ~1 min read
Quick answerRBI now exempts NCGTC guarantee claim amounts received by banks from NDTL computation for CRR/SLR, pending adjustment against advances. This reduces reserve requirements on these funds, easing liquidity pressure.
The rule, in the simplest words
NCGTC claim amounts that banks receive are now *not counted* when they calculate how much money they must keep as CRR (Cash Reserve Ratio) or SLR (Statutory Liquidity Ratio).
Because these claim funds are excluded, banks do not have to set aside extra cash for CRR/SLR on them, which gives the banks more money to lend or invest.
The rule change is made in paragraph 9 of the Master Direction on CRR/SLR – 2021 and applies to all scheduled commercial banks, regional rural banks, local area banks, small finance banks, payment banks, primary urban co‑operative banks, and state/central co‑operative banks.
Banks should update their accounting systems, train treasury and compliance staff, and review their current NCGTC claim holdings to make sure the new treatment is applied from the circular date.
How it plays out — a real example
A gold‑loan officer named Rohan in Indore receives a claim from NCGTC for a defaulted gold loan. He records the amount as a claim receivable and, thanks to the RBI rule, does not need to keep extra cash as CRR/SLR on that money, freeing up funds to offer new loans to his customers.
What changed
RBI added amounts received from NCGTC towards invoked guarantee claims, pending adjustment, to the list of liabilities excluded from NDTL computation for CRR/SLR. This amends para 9 of the Master Direction on CRR/SLR – 2021.
What it means for you
Banks can now hold these NCGTC claim funds without setting aside CRR/SLR, improving their liquidity position. This is a targeted relief for lenders dealing with guarantee-invoked advances under credit guarantee schemes.
What you must do
Update internal NDTL computation systems to exclude NCGTC claim amounts received and pending adjustment.
Train treasury and compliance teams on the revised para 9 of the CRR/SLR Master Direction.
Review current NCGTC claim holdings to ensure correct CRR/SLR treatment from the circular date.
Who it affects
All Scheduled Commercial Banks including RRBs, Local Area Banks, Small Finance Banks, Payments Banks, Primary Urban Co-operative Banks, State and Central Co-operative Banks
❓ Common questions
Does this apply to all claims from NCGTC or only specific guarantee schemes?
The circular applies to all amounts received from NCGTC towards invoked guarantee claims, pending adjustment against the related advances, without specifying particular schemes.
When does this change take effect?
The circular was issued on October 13, 2022, and is effective from that date. Banks should apply it immediately for CRR/SLR maintenance.
Do we need to report these excluded amounts separately to RBI?
The circular does not mandate separate reporting; however, banks must ensure accurate NDTL computation. Existing reporting formats under the Master Direction may need internal adjustments.
📜 Read the original circular — full text as issued by RBI
RBI/2022-23/132
DOR.RET.REC.79/12.01.001/2022-23
October 13, 2022
All Scheduled Commercial Banks (including Regional Rural Banks)
Local Area Banks, Small Finance Banks, Payments Banks
Primary (Urban) Co-operative Banks (UCBs)
State and Central Co-operative Banks (StCBs/CCBs)
Madam/Dear Sir,
Claims Received from the National Credit Guarantee Trustee Company Ltd (NCGTC) - Classification for the Purpose of Maintenance of Cash Reserve Ratio (CRR)/Statutory Liquidity Ratio (SLR)
Please refer to para 9 (Liabilities not to be included for NDTL computation) of Master Direction on CRR/SLR – 2021 dated July 20, 2021, as amended on April 06, 2022 .
2. In this connection, it has been decided that the amounts received by a bank from the National Credit Guarantee Trustee Company Ltd towards claims in respect of guarantees invoked and held by them pending adjustment of the same towards the relative advances, need not be treated as outside liabilities for the purpose of computation of NDTL for CRR and SLR.
3. Accordingly, para 9 of the Master Direction on CRR/SLR – 2021 will henceforth include “Amount received by the eligible banks from National Credit Guarantee Trustee Company Limited (NCGTC) by invoking the guarantee towards claims and pending adjustments thereof”.
Yours faithfully
(Prakash Baliarsingh)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/132 · issued 13 Oct 2022. The plain-English explanation above is BankPulse’s own independent summary.
Update internal NDTL computation systems to exclude NCGTC claim amounts received and pending adjustment.
📜 Compliance
Train treasury and compliance teams on the revised para 9 of the CRR/SLR Master Direction.
Review current NCGTC claim holdings to ensure correct CRR/SLR treatment from the circular date.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template
Example: if you are an IT/Systems lead at a bank this circular applies to (All Scheduled Commercial Banks including RRBs, Local Area Banks, Small Finance Banks, Payments Banks, Primary Urban Co-operative Banks, State and Central Co-operative Banks), your first concrete step on “NCGTC Claim Amounts: CRR/SLR Relief for Banks” is: “Update internal NDTL computation systems to exclude NCGTC claim amounts received and pending adjustment.” (RBI issued this 13 Oct 2022).
Circular: RBI/2022-23/132 -- NCGTC Claim Amounts: CRR/SLR Relief for Banks
Issued: 13 Oct 2022
Action required: Update internal NDTL computation systems to exclude NCGTC claim amounts received and pending adjustment.
Action required: Train treasury and compliance teams on the revised para 9 of the CRR/SLR Master Direction.
Action required: Review current NCGTC claim holdings to ensure correct CRR/SLR treatment from the circular date.
Owner: ____________ Target date: ____________
Board/committee approval needed? Y / N
Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.
💬 Banker Discussion
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=12403&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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