DBOD.No.BC.89/12.01.001/98-99

August 24, 1998

Bhadra 2, 1920 (Saka)

To All Scheduled Commercial Banks

(excluding Regional Rural Banks)

Dear Sir,

Section 42(2) of Reserve Bank of India Act, 1934 - Return in Form/A

Please refer to our Circular DBOD No. 71/12.01.001/93 dated January 23, 1993 in terms of which all the Scheduled Commercial Banks in India are required to indicate category wise deposits exempted from maintenance of Cash Reserve Ratio (CRR) by way of an Annexure to Form-A. With gradual deregulation of the financial sector and the consequential impact on Balance Sheets of banks, a need has arisen to modify the data reporting system of commercial banks, as the Section 42(2) Returns in the present form do not capture

(i) the total resources flow to the commercial sector and

(ii) the net foreign currency exposure of the banking system.

2. The 'Working Group on Money Supply: Analytics and Methodology of Compilation' set up by Governor, Reserve Bank of India under the Chairmanship of Dr. Y.V. Reddy, Deputy Governor, has recommended to suitably expand the Section 42(2) Returns without altering the Principal Form A, but by adding

(i) a Memorandum to Form A, incorporating data on paid up capital, reserves, certificates of deposits, and maturity structure of time deposits and two Annexures, viz

(ii) Annexure A - incorporating data on break up of external liabilities in terms of various schemes eg., FCNR (B) etc., foreign currency assets and bank credit in India in foreign currency, and domestic liabilities subject to differential/zero reserve prescriptions and

(iii) Annexure B - incorporating detailed data on banks' investments in three categories of securities viz., government securities, other approved securities, and other market instruments.

3. Accordingly, it has been decided that from the Reporting Friday October 09, 1998 all the Scheduled Commercial Banks in India should submit Form-A Returns along with the Annexure A&B in the prescribed format, as enclosed. We shall be glad if you will please take necessary action urgently in the matter.

Yours faithfully

(N.K. Sarkar)

General Manager

(a) Demand and time deposits from Banks

(b) Borrowings from Banks³

(c) Other Demand and Time Liabilities⁴

Total of I

II. Liabilities to Others in

India

(a) Aggregate Deposits (Other than from Banks)

(i) Demand

(ii) Time

(b) Borrowings⁵

(c) Other demand and time liabilities

Total of II

Total of I + II

III. Assets with the Banking System in India

(a) Balances with Banks

(i) In current account

(ii) In other accounts

(b) Money at call and short notice

(c) Advances to banks i.e., dues from banks

(d) Other Assets

Total of III

IV. Cash in India (i.e., cash in hand)

V. Investments in India (at book value)

(a) Central and State Governments securities including Treasury Bills, Treasury Deposits Receipts, Treasury Savings Deposit Certificates and Postal obligations

(b) Other approved Securities

Total of V

VI. Bank Credit in India

(excluding inter-bank advances)

(a) Loans, cash credits and overdrafts

(b) Inland Bills purchased and discounted
(i) BillsPurchased

(ii) Bills Discounted

(c) Foreign Bills purchased and discounted

(i) Billspurchased

(ii) Bills discounted

Total of VI Total of III + IV + V + VI A. Net Liabilities for the purpose of Section 42 of the Reserve Bank of India Act, 1934=Net Liability to the Banking System + Liabilities to Others in India i.e., (I-III) + II, if (I-II) is a plus figure or II only, if (I-III) is a minus figure. B. Amount of minimum deposit required to be kept with the Reserve Bank of India under the Act (rounded off to the nearest rupee) C. Savings Bank account (vide Regulation 7) Demand liabilities in India Time liabilities in India Place : Date : Memorandum to Form A 1. Paid-up Capital 1.1 Reserves 2. Time Deposits 2.1 Short-term 2.2 Long-term 3. Certificates of Deposits 4. Net Demand and Time Liabilities (after deduction of liabilities under zero reserve prescription, Annexure A) 5. Amount of Deposits required to be maintained as per current rate of CRR 6. Any other liability on which CRR is required to be maintained as per current RBI instructions
	under section 42 and 42(1A) of the Reserve Bank of India Act, 1934. 7. Total CRR required to be maintained under Section 42 and 42(1A) of the Reserve Bank of India Act, 1934. ^1Where Friday is a public holiday under the Negotiable Instruments Act, 1881 (26 of 1881) for one or more offices of a Schedule Bank, the return shall give the preceding working day's figure in respect of such office or offices, but shall nevertheless be deemed to relate to that Friday. ^2The expression "Banking System" or "Banks" Wherever it appears in the return means the banks and any other financial institutions referred to in sub-clause (i) to (vi) of clause (d) of the Explanation below Section 42(1) of the Reserve Bank of India Act, 1934. ^3In case of RRBs, apart from the sponsor bank. ^4If it is not possible to provide the figure against I(c) separately from II(c), the same may be included in the figure against IIc. In such a case, the net liability to the banking system will be worked out as the excess, if any of the aggregate of 1(a) and 1(b) over the aggregate of III. ^5Other than from Reserve Bank of India, Industrial Development Bank of India, National Bank for Agriculture and Rural Development and Export-Import Bank of India. ANNEXURE A Name of the Bank : (Amount in Rupees rounded off to the nearest thousand) Items Out
4 III.2 Inter-bank Foreign Currency Borrowings IV. Overseas Borrowings^3 Assets (I) Assets with the banking system in India I.1 Foreign Currency lending I.2 Others (II) Assets with others in India II.1 Bank Credit in India in Foreign Currency^4 II.2 Others (III) Overseas foreign currency assets^5 V. External Liabilities to Others subject to differential/zero CRR prescription (I+II) VI. External Liabilities fully subject to CRR Prescription (IV) VII. Net Inter-Bank Liabilities (I-III of Form 'A') VIII. Any other liabilities coming within the purview of zero prescription IX. Liabilities subject to zero CRR prescription (V+VII+VIII) Memo items 1. FCNR(B) Balance as on the Reporting Fortnight Balance as on 11.04.1997
	Increase over 11.04.1997 Signature of Authorised officials 1.-------------------------------------- Designation 2.-------------------------------------- Designation ^1Of contractual maturity of one year or less. ^2Of contractual maturity of more than one year. ^3Pertains to the portion not swapped into Rupees. ^4Loans out of FCNR(B) deposits. ^5Include balances held abroad (i.e., cash component of Nostro account, debit balances in ACU (US dollar) account and credit balances in the commercial banks of ACU countries) ii) short term foreign deposits and investments in eligible securities, iii) foreign money market instruments including Treasury Bills, and iv) foreign shares and bonds.

ANNEXURE B

Name of the Bank :

(Amount in Rupees rounded off to the nearest thousand)

Items Outstanding at Revaluation

book value value

I. Investments in Approved Securities (I.1 + I.2)

I.1 Investments in Government securities

(I.1.1+I.1.2 = Item V(a) of Form A)

I.1.1 Short Term¹

I.1.2 Long Term²

I.2 Investments in Other Approved Securities

(= Item V(b) of Form A)

II. Investments in Non-Approved Securities

(II.1+II.2+II.3+II.4)

Investments in

II.1 Commercial Paper

II.2 Units of Unit Trust of India and other

Mutual Funds

II.3 Shares issued by

II.3.1 Public Sector Undertakings

II.3.2 Private Corporate Sector II.3.3 Public Financial Institutions

II.4 Bonds/debentures issued by

	II.4.1 Public Sector Undertakings II.4.2 Private Corporate Sector II.4.3 Public Financial Institutions Memo Items 1. Subscriptions to shares/debentures/bonds in the Primary market. 2. Subscriptions through Private Placements Signature of Authorised Officials 1.-------------------------------------- (Designation) 2.-------------------------------------- (Designation) ^1Of contractual maturity of one year or less. ^2Of contractual maturity of more than one year.