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
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.