Section 42 of the RBI Act 1934 - Revised format for submission of quarterly ad-hoc interest claim on eligible CRR balances

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പ്രസിദ്ധീകരിച്ചത് ജനുവരി 03, 2000

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Section 42 of the RBI Act 1934 - Revised format for submission of
quarterly ad-hoc interest claim on eligible CRR balances

RESERVE BANK OF INDIA
CENTRAL OFFICE
DEPARTMENT OF BANKING OPERATIONS & DEVELOPMENT
CENTRE - 1, WORLD TRADE CENTRE
CUFFE PARADE, COLABA, MUMBAI - 400 005

December 28 ,1999

Ref. DBOD No. BC. 131 /12.01.001/1999-2000

All Scheduled Commercial Banks
(Excluding RRBs)

Dear Sir,

Section 42 of the RBI Act 1934 - Revised
format for submission of quarterly ad-hoc
interest claim on eligible CRR balances

Please refer to our Circular letter DBOD No.BC. 156/ 12 .01 .001 /97 - 98 dated December 23, 1997 enclosing therewith proforma of the quarterly ad-hoc interest claim statement. As you are aware, the procedure for calculation of CRR has undergone change with effect from the fortnight beginning Nov. 6,1999 in terms of instructions contained in para 5 of our Circular letter DBOD No. BC.113/12.01.001/99-2000 dated 29-10-99. Accordingly, the prescribed CRR during the fortnight will be maintained by every Scheduled Commercial Bank based on its NDTL as on the last Friday of the second preceding fortnight. This and certain other changes have necessitated revision in the format for submission of quarterly interest claims. The new format to be used for submission of interest claim with effect from the quarter ended December 99 onwards is enclosed for the use of banks. The following points may be noted while compiling the quarterly interest claim in the new format.

i)	All the Scheduled Commercial Banks are required to submit their claim for the first three reporting fortnights of the quarter ended Dec.99, i.e., reporting fortnight 24-9-99, 8-10-99 and 22-10-99 in the existing format forwarded with our circular letter DBOD No.BC.156/12.01.001/97-98 dated 23-12-97 referred to above. The interest claim for remaining four fortnights of this quarter i.e., reporting fortnights 22-10-99, 5-11-99, 19-11-99 and 3-12-99 should be submitted in the new format.
ii)	In terms of para 2(b) of our circular letter DBOD No.BC.113/12.01.001/99-2000 dated 29-10-99, the liabilities under FCNR(B) deposits have been exempted from the maintenance of incremental CRR @ 10 percent under Section 42(1A) of RBI Act 1934 with effect from fortnight beginning 6-11-99. With this, NRI liabilities under NRE, NRNR & FCNR(B) categories are exempted from maintenance of incremental CRR with effect from the fortnight beginning November 6,1999. The Column Nos. 6,7,8,13,14 and 15 of the existing format have therefore been omitted in the new format.
iii)	In terms of para 2 of circular letter DBOD No.BC.44/12.01.001/98-99 dated 20-5-98, the remaining two-thirds of additional cash balances maintained under 10 per cent incremental CRR by each bank based on the level of Net Demand and Time Liabilities upto April 17,1992 have been released in 12 equal installments from the fortnight beginning May 23,1998. As the incremental CRR over the NDTL level of 3-5-91 has been completely withdrawn with effect from fortnight beginning 13-3-99, the Col.No.11 of the existing format has also been omitted in the new format.
iv)	In terms of para 6 of our circular letter DBOD No.BC.113/12.01.001/1999-2000 dated 29-10-99, it has been decided to treat `cash in hand' maintained by Scheduled Commercial Banks for compliance of CRR for a limited period of two months commencing from Dec.1,1999 to January 31,2000. In order to indicate cash maintained by banks with themselves, new Column No.14 has been introduced to indicate average cash balances held with themselves. This column will be operative only for two months from 1^st Dec.99 to 31^st January 2000. This column together with Col.No.15 may be deleted for the submission of interest claim from the quarter ended June 2000 onwards.
v)	In order to arrive at the maintenance of daily balances to the extent of 85% of the required CRR, a statement of daily (date-wise) cash balances held with the bank itself for the 14 days (during the above period) should be enclosed along with the existing statement showing daily balances held with Reserve Bank of India during the fortnight.
vi)	The amount outstanding under India Development Bonds (IDBs) and Euro Issue, if any, should be shown by way of footnote (fortnight-wise) in the statement.
vii)	The enclosed new format is to be used for subsequent quarters also unless advised otherwise.

2. It is also observed that some of the banks are still forwarding to us interest claim statement in the form of compressed printout. The figures and other details therein are not easily decipherable. You are, therefore, advised to ensure that the details of claim statements submitted are of reasonable standard in respect of size, quality and print.

Please ensure that the interest claim statements are signed only by those officials whose signatures are on our record. In case of change in the incumbency, the signature/s of such official/s should be registered with us.

Please acknowledge receipt.

Yours faithfully,

Deputy General Manager

Encls. : one

Endt.DBOD No. 2195 /12.01.001/1999-2000 of date.

Copy forwarded for information and necessary action to :-

the Deputy General Manager, Department of Banking Operations & Development, Reserve Bank of India, All Regional Offices. He may please refer to the Circular letter DBOD No.ROC.6/12.01.001/98-99 dated 16-12-98 regarding submission of monthly statements on Net Demand and Time Liabilities to Central Office. In view of the changes explained above, all the Regional Offices will submit the NDTL statements w.e.f. the end of the Nov.1999 in the format enclosed with the above letter after the deletion of Column Nos.12 to 17 . The caption of the monthly statement will continue to be the same as hitherto.

( J.N.Vaidya )
Asstt.General Manager

Encl. : 1

Returns3(30-31)

Name of the bank

		Statement showing the amount of interest payable on eligible cash balances maintained with RBI for the quarter ended

(Amount in Rs.) Col. No. 3 to 16, 000 omitted
and Col.No.17 should be in actual upto two decimals

Sr.No.

Date of reporting Friday i.e. last Friday of Second preced-ing fortnight

Amount outstanding under liabilities to banking system (Net) Clause (d) of explanation to Sec.42(1) of RBI Act 1934 (Second preceding fortnight)

Amount of DTL i.e. I-III + II (if I-III is +ve) or only II (if I-III is -ve) (Second preceding fortnight)

Net liabilities on dates indicated in Col.No.(2) excluding liabilities under zero reserve prescription categories ++ (Second preceding fortnight)

Rate of
CRR

Amount of average daily balances required to be maintained for the purpose of Section 42(1) of RBI Act, 1934

Amount of incre-mental CRR re- quired to be main- tain-ed under Section 42(1A) of RBI Act, 1934.

The amount of minimum 3% CRR required to be maintain-ed by the bank.

Amount of average balances______________

(aggregate)

Average cash balances held with bank itself

Total cash balances actually held.

Amount of average daily balances (ADB), eligible for interest @ 4% p.a. [Col.No.12 less col.no.11]

Amount of interest payable at 4% p.a. on CRR balances as per Col.16

Fortnight beginning

Fortnight ended

Amount on the basis of Col.No.5 (or all the reporting fortnights)

Over the NDTL as of 5.8.94/
30.9.94 *

On the basis of Col. 4

Required to be maintain-ed under Sec. 42(1) & under Sec.42(1A of the RBI Act, 1934. Total of Col. Nos. (9 + 10)

Actually main-tained with RBI for the purpose of CRR under Sec. 42(1) and Sec. 42(1A) of the RBI Act, 1934

(Only for the period 1-12-99 to 31-1-2000

Total of Column Nos. 13 + 14)

(Col. No.12 less Col. 11)

10..

11.

12.

13.

14.

15.

16.

17.

22-10-99

06-11-99

19-11-99

05-11-99

20-11-99

03-12-99

19-11-99

04-12-99

17-12-99

03-12-99

18-12-99

31-12-99

We hereby certify that the information furnished above is correct. Our Bank has/has not# complied with CRR requirement for all the fortnights of the quarter and has/has not# defaulted in the maintenance of CRR during the quarter. In case of the default detected subsequently, we undertake to refund the excess amount alongwith such interest as may be levied by Reserve Bank of India within a week from the date of demand, failing which we authorise Reserve Bank of India to debit our account with them for a like amount. We also note that Reserve Bank of India would withdraw the facility of ad-hoc payment of interest in the event of furnishing incorrect information/delayed submission of required returns/submission of incorrect return.

Place :	Signature :
Date :	Name :
	Designation :

	Seal of the bank.

In case there is default/shortfall in the maintenance of CRR in any of the fortnights; please indicate reasons therefor.

++ Liabilities under zero reserve prescription - NRE, NRNR, FCNR(B) and liabilities to banking system (Net), outstanding amount of Tier II capital as applicable.

* Information under this column is to be furnished by 37 banks which were asked to maintain 10 per cent incremental CRR over their NDTL of 5-8-94/30-9-94.

# Strike out which is not applicable under the signature of authorised signatory.

Please leave sufficient space between two Sr. Nos.

Please indicate the amount of outstanding on reporting Friday under Euro Issue Deposits and India Development Bonds(IDBs) with banks and CRR maintained @ 7.5% and average CRR respectively thereon fortnight-wise. This amount may be included under Col.12. Scheduled Commercial Banks which have issued subordinated debt as Tier II capital, should follow the instructions contained para.4 of DBOD Circular letter DBOD. No.BP.BC.5/21.01.002/98-99 dated 8 February 1999 and accordingly include requisite amount in column No.4 (DTL) and column No.5(NDTL) in the above statement.

Dates indicated in column Nos.2, 7 and 8 of the statement relate only to the quarter ended December 1999.