**Summary:**
This circular, reference number RBI/2018-19/84 DBR.BP.BC.No.0821/04.098/2018-19, dated November 29, 2018, issued by the Reserve Bank of India (RBI), addresses the implementation of the Basel III Framework on Liquidity Standards, specifically the Net Stable Funding Ratio (NSFR). It serves as a follow-up to circular DBR.BP.BC.No.1062/21.04.098/2017-18 dated May 17, 2018, which provided the final NSFR guidelines. The key decision announced in this circular is that the NSFR guidelines will become effective from April 1, 2020, for all Scheduled Commercial Banks excluding Regional Rural Banks (RRBs). Inquiries can be directed to Saurav Sinha, Chief General Manager-in-Charge, Department of Banking Regulation, Central Office, 12th Floor, Shahid Bhagat Singh Marg, Mumbai – 400001. Contact information includes Tel No: 22601000, Fax No: 22705691, and Email ID: cgmicdbr@rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
Basel III Framework: An international regulatory framework for banks, designed to improve risk management and stability in the banking sector.
Liquidity Standards: A set of regulations designed to ensure that banks have sufficient liquid assets to meet their short-term obligations.
Net Stable Funding Ratio (NSFR): A regulatory metric that requires banks to maintain a minimum amount of stable funding relative to their less liquid assets.
Scheduled Commercial Banks: Banks in India that are listed in the Second Schedule to the Reserve Bank of India Act, 1934, excluding Regional Rural Banks (RRBs).
Saurav Sinha: Chief General Manager-in-Charge at the Department of Banking Regulation, Reserve Bank of India.
Department of Banking Regulation: A department within the Reserve Bank of India responsible for regulating the banking sector.
Mumbai, Maharashtra: The city in India where the Central Office of the Department of Banking Regulation is located.
भारतीय �रजव र् बक�
_________________RESERVE BANK OF INDIA _________________
www.rbi.org.in
RBI/2018-19/84
DBR.BP.BC.No.08/21.04.098/2018-19 November 29, 2018
All Scheduled Commercial Banks
(excluding RRBs)
Dear Sir/Madam,
Basel III Framework on Liquidity Standards –
Net Stable Funding Ratio (NSFR) – Final Guidelines
Please refer to our circular DBR.BP.BC.No.106/21.04.098/2017-18 dated May 17,
2018 on final Net Stable Funding Ratio (NSFR) guidelines.
2. It has now been decided that the NSFR guidelines will come into effect from April
1, 2020.
Yours faithfully
(Saurav Sinha)
Chief General Manager-in-Charge
ब��कंग �व�नयमन �वभाग, केन्द्र�य कायार्लय, 12वी ंमंिज़ल, शह�द भगत �सहं माग,र् मुंबई – 400001
Department of Banking Regulation, Central Office, 12th Floor, Shahid Bhagat Singh Marg, Mumbai - 400001
Tel No: 22601000 Fax No: 22705691 Email ID: cgmicdbr@rbi.org.in