**Policy Summary: Reporting of Certificates of Deposit (CDs) in Form A Return**
This circular, DOR.No.Ret.BC.38/12.01.001/2019-20 dated February 26, 2020, issued by the Reserve Bank of India (RBI), addresses the reporting of transactions related to Certificates of Deposit (CDs) in the Form A Return, as mandated under Section 42 of the Reserve Bank of India Act, 1934. The circular is directed to all Scheduled Commercial Banks, including Regional Rural Banks, Small Finance Banks, Payments Banks, and Local Area Banks.
The circular revises the reporting practices for CDs in the Form A Return. Key changes are as follows:
* **CDs Issued and Held by Banks:** If, based on depository statements, CDs issued by a bank are held by other banks on the reporting Friday, the issuer bank should report these CDs under item I of the Form A Return, "Liabilities to the Banking System in India."
* **CDs Issued and Held by Non-Bank Entities:** CDs held by non-bank entities should continue to be reported as "Liabilities to Others in India" under item II of the Form A Return.
* **Segregation of CD Holders:** If a bank cannot differentiate between bank and non-bank holders of its issued CDs, the total CDs issued should be reported under item II of the Form A Return, "Liabilities to Others in India."
* **Reporting Value:** The reporting of CDs should be based on the issue price of the CDs.
* **Investments in CDs Issued by Other Banks:** Investments in CDs issued by other banks should be reported under item III of the Form A Return, "Assets with the Banking System in India." These assets can be netted off against "Liabilities to the Banking System in India."
The circular is issued by Dr. S K Kar, Chief General Manager, Reserve Bank of India. For further information, contact the Department of Regulation, Central Office, 12th-13th Floor, Central Office Building, Shaheed Bhagat Singh Marg, Mumbai – 400001. Tel No: 22661602, 22601000 Fax No: 022-2270 5670, 2260 5671, 2270 5691, 2260 5692. Website: www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, the primary regulator in this notification.
Scheduled Commercial Banks: A category of banks regulated by the Reserve Bank of India.
Regional Rural Banks: A type of scheduled commercial bank in India with a regional focus.
Small Finance Banks: A type of bank in India focused on providing basic banking services to underserved populations.
Payments Banks: A type of bank in India that can accept deposits and offer payment services.
Local Area Banks: A type of private sector bank in India operating in a specific local area.
Certificates of Deposit CDs: A financial instrument representing a time deposit with a bank.
Reserve Bank of India Act, 1934: The legislation that established the Reserve Bank of India and grants it regulatory powers.
भारतीय �रज़व र् बक�
______________________RESERVE BANK OF INDIA ______________________
www.rbi.org.in
RBI/2019-20/165
DOR.No.Ret.BC.38/12.01.001/2019-20 February 26, 2020
All Scheduled Commercial Banks (including Regional Rural Banks),
Small Finance Banks, Payments Banks & Local Area Banks.
Dear Sir / Madam
Investment in Certificates of Deposit (CDs) - Reporting in Form ‘A’ Return
Please refer to our circular DBOD.Ret.No.8232/12.01.001/2005-06 dated March 23, 2006 on
“Investment in Certificates of Deposit (CDs)” whereby banks were advised about the reporting
of transactions related to issuance and investment in Certificates of Deposit (CDs) in Form
‘A’ Return under Section 42 of the Reserve Bank of India Act, 1934.
2. On a review, it has been decided that the banks should follow the following practice while
reporting their transactions in CDs in Form ’A’ Return.
A) Based on the statement issued by depositories, if the CDs issued are held by banks on
reporting Friday, the issuer bank should report such CDs under item I of the Form ‘A’
Return i.e., “Liabilities to the Banking System in India”. The CDs held by non-bank entities
should be reported as “Liabilities to Others in India”, as hitherto. If the bank is not in a
position to segregate the holders of CDs issued between bank and non-bank entities, then
the total CDs issued should be reported under item II of the Form ‘A’ Return i.e., “Liabilities
to Others in India”. The reporting of CDs should be done as per the issue price of the CDs.
िविनयमन िवभाग, क�द्रीय काया�लय, 12वी ंऔर 13वी ंमंिज़ल, क�द्रीय काया�लय भवन, शहीद भगत िसंह माग�, मुंबई 400001
टेलीफोन /Tel No: 22661602, 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: 22661602, 22601000 Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692
ब�क िहंदी म� पत्राचार का �ागत करता है
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc.
It never keeps or offers funds to anyone. Please do not respond in any manner to such offers.B) Investments in CDs issued by other banks should be reported under item III of the Form
‘A' Return i.e., "Assets with the Banking System in India" and these assets could be netted
off against "Liabilities to the Banking System in India".
Yours faithfully
(Dr. S K Kar)
Chief General Manager