02 February 2023
EC No. 15/DoS- 04/2023
All Regional Rural Banks
Offsite Surveillance System (OSS) – Revision of Due Dates for Submission of “OSR–7 - Statement on CRAR” Return
We invite a reference to RBI Circular No.RPCD.CO.RRB.No.BC.44/05.03.095/ 2007-08 dated 28 December 2007 addressed to Chairmen of all RRBs wherein RRBs were advised to disclose the level of CRAR as on 31 March 2008 in their Balance Sheets and thereafter every year as 'Notes on Accounts' to their Balance Sheets. The fundamental objective behind introducing CRAR framework was to strengthen the soundness and stability of the RRBs. RRBs were also advised to furnish an annual return to RBI Regional Office / NABARD Regional Office, indicating capital funds and risk assets ratio, in the prescribed format and the return should be signed by two officials who are authorised to sign the statutory returns submitted to the Reserve Bank of India.
2. Further, RRBs were advised vide Circular No, RPCD.CO.RRB.BC.No.60 /03.05.33 /2013-14 dated 26 November 2013 to achieve and maintain a minimum CRAR of 9% on an ongoing basis with effect from March 31, 2014.
3. RBI has indicated that the CRAR requirement of RRBs will be reviewed henceforth on an ongoing basis for deciding their participation in Liquidity Adjustment Facility (LAF) and Marginal Standing Facility (MSF) and accordingly NABARD has been advised to provide the CRAR position of RRBs on a quarterly basis.
4. In accordance with RBI instructions, it has been decided to revise the periodicity of the return “OSR-7 – Statement on CRAR” to “Quarterly” which would, inter alia, enable to improve the efficacy of analysing the performance of RRBs in a systematic and timely manner. The first of such return is published for the quarter ending 31 December 2022, which may be submitted latest by 15 February 2023 and thereafter as per the periodicity and timelines prescribed as under:
5. The SE may study the revision in periodicity and timelines for submission of the return and make suitable changes/improvements in its internal MIS so that the return can be submitted within the prescribed due dates.
6. The OSS / FMS returns are prescribed by NABARD in exercise of the powers conferred under Section 27(3) of Banking Regulation Act, 1949 and are hence statutory in nature. All banks are, therefore, advised to ensure submission of these returns as per the schedule prescribed without fail. Non-submission of returns or wrong reporting in these returns attracts regulatory action as specified in the Act.
7. Please acknowledge the receipt of this circular to our Regional Office concerned.
(D K Gawali)