Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
The Reserve Bank of India (RBI) has issued a master circular outlining the guidelines for Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
Purpose: The circular aims to consolidate and update the existing instructions on CRR and SLR.
Scope of Application: The circular applies to all scheduled commercial banks (SCBs), including regional rural banks (RRBs) and local area banks (LABs).
CRR: The CRR is the percentage of deposits that banks must maintain with the RBI.
Maintenance of CRR: Banks must maintain a minimum CRR on a daily basis, with a fortnightly return in Form A (CRR) submitted to the RBI.
Computation of DTL: The Deposit and Time Liabilities (DTL) include demand and time liabilities, but exclude certain exempted categories.
Penalties: Banks failing to maintain the required CRR will be subject to penalties.
SLR: The SLR is the percentage of deposits that banks must maintain in the form of liquid assets.
Assets with the Banking System: Banks can maintain SLR assets with the RBI, other banks, or in the form of approved securities.
The circular also outlines procedures for computation of CRR, maintenance of CRR on a daily basis, and exemptions from CRR and SLR.
Chat with the Master Circular:
Download: Master Circular – Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)