NB.DoS.HO.POL/ 4799 / J - 1 /2017-18
16 March 2018
(Circular No. 46 / DoS - 13 / 2018)
The Managing Directors/ Chief Executive Officers of
All the State Cooperative Banks /
All District Central Cooperative Banks
Madam / Dear Sir
Risk Weights for Calculation of CRAR
1. Please refer to RBI Circular No. RPCD.RCB.BC.No.37/07.51.012/2014-15 29 October 2014 wherein RBI has prescribed the Risk weights to be allotted to various items of assets for arriving the net book value of the assets for computation of Risk Weighted Assets.
2. In this connection, we advise that, while reviewing the Inspection Reports of the StCBs / DCCBs, it has been observed that contrary to the guidelines some banks show the amounts under the interest subvention claims under the head "other assets - Accrued Interest on CRR balances and claims on RBI on account of Govt transactions" and assign “zero risk weight” to them while calculating the CRAR.
3. We, therefore, request you to take note of the RBI observation in the matter and ensure that the bank may assign proper risk weights and strictly adhering to the CRAR guidelines prescribed by RBI.
4. Please acknowledge the receipt of this circular to our Regional Office.
(K Venkateswara Rao)
Chief General Manager