**Summary:**
This Reserve Bank of India (RBI) circular (RBI/2019-20/187 DOR.BP.BC.No.46/21.04.098/2019-20) dated March 27, 2020, addresses all Scheduled Commercial Banks excluding Regional Rural Banks (RRBs) regarding the implementation of the Basel III Framework on Liquidity Standards, specifically the Net Stable Funding Ratio (NSFR). Further to the circular DBR.BP.BC.No.08/21.04.098/2018-19 dated November 29, 2018, and paragraph 8 of the Statement on Developmental and Regulatory Policies of the Seventh Bimonthly Monetary Policy Statement, 2019-20 dated March 27, 2020, the RBI has decided to defer the implementation of the NSFR guidelines by six months. The new effective date for the NSFR guidelines is October 1, 2020, instead of the previously scheduled date of April 1, 2020. For further information, contact Saurav Sinha, Chief General Manager-in-Charge.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector.
Scheduled Commercial Banks: Banks in India that are listed in the Second Schedule to the Reserve Bank of India Act, 1934.
RRBs: Regional Rural Banks in India.
Basel III Framework: A comprehensive set of reform measures, developed by the Basel Committee on Banking Supervision, to strengthen the regulation, supervision and risk management of the banking sector.
Liquidity Standards: A set of regulations designed to ensure that banks maintain sufficient liquid assets to meet their short-term obligations.
Net Stable Funding Ratio (NSFR): A regulatory metric designed to ensure that banks have sufficient stable funding to cover their long-term assets.
Seventh Bimonthly Monetary Policy Statement, 2019-20: A statement issued by the Reserve Bank of India outlining its monetary policy decisions.
Saurav Sinha: Chief General Manager-in-Charge at Reserve Bank of India
भारतीय �रज़व र् बक�
RESERVE BANK OF INDIA
RBI/2019-20/187
DOR.BP.BC.No.46/21.04.098/2019-20 March 27, 2020
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir/Madam,
Basel III Framework on Liquidity Standards –
Net Stable Funding Ratio (NSFR)
Please refer to paragraph 8 of Statement on Developmental and Regulatory
Policies of Seventh Bi-monthly Monetary Policy Statement, 2019-20 dated March
27, 2020 and our circular DBR.BP.BC.No.08/21.04.098/2018-19 dated November
29, 2018 on final Net Stable Funding Ratio (NSFR) guidelines.
2. On a review, it has now been decided to defer the implementation of NSFR
guidelines by six months. These guidelines will now come into effect from October
1, 2020 as against April 1, 2020.
Yours faithfully
(Saurav Sinha)
Chief General Manager-in-Charge