What changed
RBI consolidated and updated the CRR and SLR framework for Regional Rural Banks under the Banking Regulation Act, 1949 and RBI Act, 1934. The Directions clarify the apportionment of savings bank deposits into demand and time liabilities based on half-yearly averages. They also specify that only unencumbered approved securities qualify as SLR assets, with certain exceptions for securities lodged with other institutions.
What it means for you
RRBs must now follow a standardized method for splitting savings deposits into demand and time components for CRR/SLR computation, using half-yearly averages. This could affect liquidity calculations and reporting accuracy. The clarification on encumbered securities ensures that only truly unencumbered assets count toward SLR, potentially impacting banks' liquidity coverage ratios.
What you must do
- Review and update internal systems to compute savings bank deposit apportionment as per the half-yearly average method.
- Ensure CRR and SLR reporting uses Form A and Form VIII respectively, with correct classification of approved securities.
- Verify that only unencumbered approved securities are counted for SLR, except for specified exceptions.
- Train compliance teams on the new definitions and reporting timelines effective immediately.
Who it affects
Regional Rural Banks (RRBs), Treasury and compliance departments of RRBs, RBI reporting and supervision teams
What is the effective date of these Directions?
The Directions came into force with immediate effect from November 28, 2025.
How should RRBs apportion savings bank deposits for CRR/SLR?
RRBs must calculate the average minimum balance per account over each half-year (ending March 31 and September 30) as the time liability portion, with the remainder as demand liability. This proportion applies for the next half-year's reporting fortnights.
Which securities qualify as SLR assets under the new Directions?
Approved securities include dated Government of India securities, Treasury Bills, State Development Loans (SDLs), and any other instruments notified by RBI. Only unencumbered portions count for SLR, except securities lodged with another institution as specified.