What changed
RBI consolidated and updated the CRR and SLR framework specifically for Rural Co-operative Banks (StCBs and DCCBs) under a single direction. It formalizes the procedure for apportioning savings bank deposits into demand and time liabilities based on half-yearly calculations. The direction also specifies the list of approved securities for SLR compliance, including dated securities, Treasury Bills, and State Development Loans.
What it means for you
Rural Co-operative Banks now have a unified, clear regulatory reference for CRR and SLR maintenance, reducing ambiguity. The standardized savings bank apportionment method ensures consistent liability classification across all StCBs and DCCBs. Banks must align their reporting processes to the specified forms and timelines to avoid penalties.
What you must do
- Review and update internal CRR and SLR computation processes to align with the new directions, especially the savings bank apportionment formula.
- Ensure CRR reporting uses Form B (scheduled banks) or Form I (non-scheduled banks) and SLR reporting uses Form I as specified.
- Train compliance and treasury teams on the approved securities list and the half-yearly apportionment cycle for savings deposits.
- Verify that all SLR-eligible securities held are among the approved categories: dated G-Secs, T-Bills, SDLs, or other RBI-notified instruments.
Who it affects
State Co-operative Banks (StCBs), District Central Co-operative Banks (DCCBs), Rural Co-operative Banks' compliance and treasury departments
How should we apportion savings bank deposits into demand and time liabilities?
Calculate the average minimum balance per account over each month of the half-year (ending March 31 and September 30). Treat that average as the time liability portion; the remainder of the average actual balance is the demand liability. Use these proportions for all reporting fortnights in the next half-year.
Which securities qualify as SLR-approved securities under these directions?
Approved securities include dated Government of India securities (market borrowing and MSS), Treasury Bills, State Development Loans (SDLs), and any other instruments notified by RBI. These are commonly referred to as SLR securities.
What are the reporting forms for CRR and SLR?
For CRR, scheduled co-operative banks use Form B, while non-scheduled banks use Form I under Section 18 of the Banking Regulation Act. For SLR, all co-operative banks use Form I under Section 24 of the same Act.