All HC: Can’t Invoke Penalty Proceedings u/s 129 of UPGST Act, 2017 For Search And Seizure Of Godown  ||  All. HC: Businessman Doing Business Activities Within Slum Can’t Be Called a Slum Dweller  ||  SC: No Charity Being Done By State For Paying Compensation to Person Whose Land Was Acquired  ||  Gauhati HC: Can’t Shift Burden of Proof on Accused if Multiple Witnesses of Crime Present  ||  SC: Contempt Notice Issued Against Patanjali For Continued Publishing of Misleading Advertisements  ||  SC: Registry Can’t Decide Whether or Not Review Petiton Merits Relook Through Curative Petiton  ||  Bom. HC: Imprisonment Exceeding Twelve Months Can’t Be Given For Default in Payment of Maintenance  ||  Cal. HC: Cannot Differentiate Between Contractual and Permanent Employees For Maternity Leave  ||  Supreme Court: Entering Into Sale Agreement With Minor is Void and Unenforceable  ||  SC: Information Disclosing Cognizable Offence to Be Recorded as FIR & Not in General Diary    

Incentivising bank credit to specific sectors - Exemption from CRR maintenance- (Reserve Bank of India) (10 Feb 2020)

MANU/RMIC/0017/2020

Banking

It has been announced in paragraph 3 of the Statement on Developmental and Regulatory Policies of February 6, 2020, that the Reserve Bank is actively engaged in revitalising the flow of bank credit to productive sectors having multiplier effects to support growth impulses. Accordingly, banks are allowed to deduct the equivalent amount of incremental credit disbursed by them as retail loans to automobiles, residential housing, and loans to micro, small and medium enterprises (MSMEs), over and above the outstanding level of credit to these segments as at the end of the fortnight ended January 31, 2020 from their net demand and time liabilities (NDTL) for maintenance of the cash reserve ratio (CRR).

Banks are advised that they can claim the first such deduction from the NDTL of February 14, 2020 for the amount equivalent to the incremental credit extended to the sectors indicated above over the outstanding level of credit as at the end of the fortnight ended January 31, 2020.

An amount equivalent to the incremental credit outstanding from the fortnight beginning January 31, 2020 and up to the fortnight ending July 31, 2020 will be eligible for deduction from NDTL for the purpose of computing the CRR for a period of five years from the date of origination of the loan or the tenure of the loan, whichever is earlier.

Banks are required to report the exemption availed at the end of a fortnight under "exemptions/others" in the Section-42 return, prescribed in Annex A to Form A as per Master Circular on Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) dated July 1, 2015. Proper fortnightly records of net incremental credit extended to the select sectors/NDTL exemption claimed, duly certified by the Chief Financial Officer (CFO) or an equivalent level officer, must be maintained by banks for supervisory review.

Tags : BANK CREDIT   EXEMPTION   CRR MAINTENANCE  

Share :        

Disclaimer | Copyright 2024 - All Rights Reserved