Reserve Bank of India Directions
The Reserve Bank of India has issued directions regarding Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) for banks.
Applicability: These directions apply to all Scheduled Commercial Banks (SCBs) and Primary (Urban) Co-operative Banks (UCBs).
Definitions: The directions define key terms such as Cash Reserve Ratio, Statutory Liquidity Ratio, Net Demand and Time Liabilities, and others.
Cash Reserve Ratio (CRR): The CRR is the percentage of deposits that banks must maintain with the RBI. The directions outline the maintenance of CRR, incremental CRR, and computation of NDTL.
Maintenance of CRR: Banks must maintain a minimum CRR on a daily basis. The directions specify the liabilities that are not included in NDTL computation and exempted categories.
Statutory Liquidity Ratio (SLR): The SLR is the percentage of deposits that banks must maintain in the form of cash, gold, or other approved securities. The directions outline the SLR requirements.
Other Provisions: The directions also cover loans out of FCNR (B) deposits and inter-bank foreign currency deposits, and exempted categories.
Chat with the Master Direction: