Date: 2022-10-13Category: Not ApplicableState: Union GovernmentCountry: India
Claims Received from the National Credit Guarantee Trustee Company Ltd (NCGTC) - Classification for the Purpose of Maintenance of Cash Reserve Ratio (CRR)/Statutory Liquidity Ratio (SLR)
**Policy Summary: RBI/2022-23/132 DOR.RET.REC.7912/01.001/2022-23**
**Date:** October 13, 2022
**Subject:** Classification of Claims Received from the National Credit Guarantee Trustee Company Ltd (NCGTC) for the Purpose of Maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
**Applicability:** All Scheduled Commercial Banks (including Regional Rural Banks, Local Area Banks, Small Finance Banks, Payments Banks), Primary Urban Cooperative Banks (UCBs), State and Central Cooperative Banks (StCBs/CCBs)
**Summary:** This Reserve Bank of India (RBI) directive clarifies the treatment of funds received from the National Credit Guarantee Trustee Company Ltd (NCGTC) concerning invoked guarantees for the purpose of calculating Net Demand and Time Liabilities (NDTL) for CRR and SLR requirements. The directive states that amounts received by eligible banks from NCGTC as claims against invoked guarantees, pending their adjustment towards the related advances, will **not** be treated as outside liabilities when computing NDTL for CRR and SLR. This amends the Master Direction on CRR/SLR 2021, dated July 20, 2021, as amended on April 06, 2022. Para 9 of the Master Direction on CRR/SLR 2021 will now include "Amount received by the eligible banks from National Credit Guarantee Trustee Company Limited (NCGTC) by invoking the guarantee towards claims and pending adjustments thereof."
**Contact:** Prakash Baliarsingh, Chief General Manager, Department of Regulation, Central Office, 12th/13th Floor, Central Office Building, Shaheed Bhagat Singh Marg, Mumbai 400001. Tel No: 22601000; Fax No: 022-2270 5670, 2260 5671, 2270 5691, 2260 5692.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system.
National Credit Guarantee Trustee Company Ltd: An entity involved in providing guarantees and settling claims related to those guarantees for banks.
Cash Reserve Ratio: The percentage of a bank's total deposits that it is required to maintain with the Reserve Bank of India.
Statutory Liquidity Ratio: The minimum percentage of deposits that a commercial bank has to maintain in the form of liquid assets.
Master Direction on CRRSLR 2021: A regulatory document issued by the Reserve Bank of India pertaining to Cash Reserve Ratio and Statutory Liquidity Ratio requirements for banks.
Scheduled Commercial Banks: Banks recognized by the Reserve Bank of India and listed in the Second Schedule of the Reserve Bank of India Act, 1934.
Regional Rural Banks: Regional Rural Banks (RRBs) are financial institutions in India which operate at a regional level providing banking and financial services to rural areas.
Mumbai, Maharashtra: The city in India where the central office of the Reserve Bank of India is located.
भारतीय �र ज़व� ब�क
RESERVE BANK OF INDIA
RBI/2022-23/132
DOR.RET.REC.79/12.01.001/2022-23 October 13, 2022
All Scheduled Commercial Banks (including Regional Rural Banks)
Local Area Banks, Small Finance Banks, Payments Banks
Primary (Urban) Co-operative Banks (UCBs)
State and Central Co-operative Banks (StCBs/CCBs)
Madam/Dear Sir,
Claims Received from the National Credit Guarantee Trustee Company Ltd (NCGTC) -
Classification for the Purpose of Maintenance of Cash Reserve Ratio (CRR)/Statutory Liquidity
Ratio (SLR)
Please refer to para 9 (Liabilities not to be included for NDTL computation) of Master Direction on
CRR/SLR – 2021 dated July 20, 2021, as amended on April 06, 2022.
2. In this connection, it has been decided that the amounts received by a bank from the National Credit
Guarantee Trustee Company Ltd towards claims in respect of guarantees invoked and held by them
pending adjustment of the same towards the relative advances, need not be treated as outside
liabilities for the purpose of computation of NDTL for CRR and SLR.
3. Accordingly, para 9 of the Master Direction on CRR/SLR – 2021 will henceforth include “Amount
received by the eligible banks from National Credit Guarantee Trustee Company Limited (NCGTC) by
invoking the guarantee towards claims and pending adjustments thereof”.
Yours faithfully
(Prakash Baliarsingh)
Chief General Manager
िविनयमन िवभाग, क�द्रीय काया�लय, 12वी ंऔर 13वी ंमंिज़ल, क�द्रीय काया�लय भवन, शहीद भगत िसंह माग�, मुंबई 400001
टेलीफोन /Tel No: 22601000 फै�/ Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692
Department of Regulation, Central Office, 12th & 13th Floor, Central Office Building, Shaheed Bhagat Singh Marg, Mumbai – 400001
Tel No: 22601000 Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692
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