What changed
RBI issued a consolidated Master Direction covering CRR and SLR for all scheduled commercial banks, small finance banks, payments banks, local area banks, and cooperative banks. It codifies definitions like aggregate deposits and savings bank apportionment, and specifies statutory returns for reporting CRR and SLR maintenance. The direction updates earlier circulars and is effective from July 20, 2021, with subsequent updates.
What it means for you
Banks must align their CRR and SLR reporting with the unified framework, using the specified forms (Form A/B for CRR, Form VIII/I for SLR). The savings bank apportionment method (based on half-yearly averages) continues, impacting liquidity calculations. This reduces ambiguity and ensures consistent compliance across all bank types.
What you must do
- Review and update internal CRR and SLR reporting processes to match the prescribed statutory returns (Form A/B for CRR, Form VIII/I for SLR).
- Ensure savings bank deposit apportionment follows the half-yearly average method (September and March basis) for demand/time liability split.
- Train compliance teams on the consolidated definitions, especially 'aggregate deposits' and 'approved securities'.
- Monitor RBI updates (e.g., December 2024) for any changes to the direction.
Who it affects
All Scheduled Commercial Banks (including RRBs), Small Finance Banks, Payments Banks, Local Area Banks, Primary (Urban) Co-operative Banks, State Co-operative Banks, District Central Co-operative Banks
What is the effective date of this Master Direction?
The direction came into effect on July 20, 2021, when it was placed on RBI's website, with updates as of December 16, 2024.
How should savings bank deposits be split into demand and time liabilities?
Banks must use the half-yearly average method: calculate the average minimum balance per account over each month of the half-year (ending September 30 and March 31) as the time liability portion; the remainder is demand liability. This proportion applies for the next half-year's fortnights.
Which banks are covered under these directions?
All scheduled commercial banks (including RRBs), small finance banks, payments banks, local area banks, and all cooperative banks (urban, state, and district central) are covered, unless stated otherwise.