The Reserve Bank of India (RBI) on April 6, 2022 has issued Master Direction - Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) Directions – 2021.
The following has been stated namely: -
• Cash Reserve Ratio (CRR) - Every bank shall maintain in India by way of cash reserve, a sum equivalent to such percent of the total of its Net Demand and Time Liabilities (NDTL) in India, in such manner and for such dates as prescribed, from time to time having regard to the needs of securing the monetary stability in the country.
• Maintenance of CRR - Every scheduled bank shall maintain in India with the Reserve Bank, an average daily balance, the amount of which shall not be less than four per cent of the bank’s total NDTL in India as on the last Friday of the second preceding fortnight. The extent of provisions in this regard as applicable to scheduled banks shall, mutatis mutandis, be applicable to Small Finance Banks (SFBs) and Payments Banks (PBs).
• Maintenance of Minimum CRR on Daily Basis - Every scheduled bank, small finance bank and payments bank shall maintain minimum CRR of not less than ninety per cent of the required CRR on all days during the reporting fortnight, in such a manner that the average of CRR maintained daily shall not be less than the CRR prescribed by the Reserve Bank.
• CRR Computation - In order to improve cash management by banks, as a measure of simplification, a lag of one fortnight is allowed to banks to maintain CRR based on the NDTL of the last Friday of the second preceding fortnight.
[Notification No. RBI/DOR/2021-22/80]
