**Summary:**
This circular, reference RBI/2021-22/30 DoR.RET.REC.09/12.01.001/2021-22 dated May 05, 2021, issued by the Reserve Bank of India (RBI), extends an exemption to Scheduled Commercial Banks regarding the calculation of the Cash Reserve Ratio (CRR). The circular is in reference to circular DOR.No.Ret.BC.37/12.01.001/2020-21 dated February 5, 2021. The initial circular allowed banks to deduct the amount equivalent to credit disbursed to new Micro, Small, and Medium Enterprise (MSME) borrowers (up to ₹25 lakh per borrower) from their Net Demand and Time Liabilities (NDTL) for CRR calculation. This exemption, initially available for credit disbursed up to the fortnight ending October 1, 2021, has now been extended to include credit disbursed up to the fortnight ending December 31, 2021. All other instructions from the original circular remain unchanged. For further information, contact Thomas Mathew, Chief General Manager, Department of Regulation, Central Office, 5th floor, Amar Building, Sir P.M. Road, Mumbai – 400001. Phone: 022-22603000. Email: returns@rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India.
Scheduled Commercial Banks: Banks included in the Second Schedule to the Reserve Bank of India Act, 1934.
MSME: Micro, Small and Medium Enterprises
DOR.No.Ret.BC.37/12.01.001/2020-21: Reference number of a circular issued by the Reserve Bank of India, dated February 5, 2021.
Net Demand and Time Liabilities (NDTL): A banking term referring to the difference between a bank's demand and time liabilities.
Cash Reserve Ratio (CRR): The percentage of a bank's total deposits that it is required to maintain with the Reserve Bank of India.
Mumbai, Maharashtra: City in India where the central office of Department of Regulation, Reserve Bank of India is located.
Thomas Mathew: Chief General Manager at Reserve Bank of India.
भारतीय �रज़व र् बक�
_________________ RESERVE BANK OF INDIA________________
www.rbi.org.in
RBI/2021-22/30
DoR.RET.REC.09/12.01.001/2021-22 May 05, 2021
All Scheduled Commercial Banks
Madam/Sir
Credit to MSME Entrepreneurs
Please refer to our circular DOR.No.Ret.BC.37/12.01.001/2020-21 dated February 5,
2021, on captioned subject.
2. In terms of the above circular, Scheduled Commercial Banks were allowed to
deduct the amount equivalent to credit disbursed to new MSME borrowers from their
Net Demand and Time Liabilities (NDTL) for calculation of the Cash Reserve Ratio
(CRR). This exemption was available up to ₹ 25 lakh per borrower for the credit
disbursed up to the fortnight ending October 1, 2021.
3. It has been decided to extend this exemption for such credits disbursed up to the
fortnight ending December 31, 2021. All other instructions contained in the circular ibid
remain same.
Yours faithfully
(Thomas Mathew)
Chief General Manager
�व�नयमन �वभाग, क�द्र�य कायालर् य, 5वी ं मंिजल, अमर भवन, सर पी एम रोड, मुंबई 400001
Department of Regulation, Central Office, 5th floor, Amar Building, Sir P.M.Road, Mumbai-400001
टेल�फोन/Tel No:022-22603000 Email ID: returnsco@rbi.org.in