What changed
This master circular updates the previous July 2010 circular by incorporating all CRR/SLR instructions issued up to June 30, 2011. No new policy changes were introduced; it is purely a consolidation exercise. The circular reiterates existing CRR rate (6%) and confirms no incremental CRR is applicable.
What it means for you
Banks must continue maintaining CRR at 6% of their net demand and time liabilities (NDTL) and SLR as per existing rules. The circular serves as a single reference document, reducing the need to track multiple circulars. Compliance remains critical to avoid penalties under Section 42 of the RBI Act and Section 24 of the Banking Regulation Act.
What you must do
- Ensure CRR is maintained at 6% of NDTL on a daily average basis for each fortnight.
- File Form A (CRR) and Form VIII (SLR) returns accurately and on time.
- Verify that statutory auditors certify the correctness of DTL computation for SLR.
- Review internal processes to align with the consolidated instructions in this master circular.
Who it affects
All Scheduled Commercial Banks (excluding Regional Rural Banks), Treasury and compliance departments of SCBs, Statutory auditors of banks
What is the current CRR rate as per this circular?
The CRR is prescribed at 6.00% of a bank's total demand and time liabilities (DTL), effective from the fortnight beginning April 24, 2010. No incremental CRR is required currently.
Which banks are covered under this master circular?
This circular applies to all Scheduled Commercial Banks (SCBs) except Regional Rural Banks (RRBs).
What are the key compliance returns mentioned?
Banks must submit Form A return for CRR compliance under Section 42(2) of the RBI Act, 1934, and Form VIII return for SLR compliance under Section 24 of the Banking Regulation Act, 1949.