Reserve Bank of India has asked banks to undertake a special scrutiny of the computation of demand and time liabilities (DTL) or net DTL (NDTL) to ensure that extant guidelines are being strictly followed. | |
| "During the course of inspection of some banks, certain deficiencies in computation of DTL/NDTL for the purpose of maintaining cash reserve ratio (CRR) or statutory liquidity ratio (SLR) have been found and hence all banks must immediately arrange for a special scrutiny," RBI said in a notification here on Friday. |
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| "It is apparent that banks are yet to put in place a fool-proof system to ensure that all items of external liabilities are reckoned for the purpose of compiling DTL/NDTL based on which the reserve requirements are required to be worked out," the central bank said. |
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| RBI said the integrity of the software used by the bank must also be verified and scrutiny should be carried out by the internal or external auditors. |
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| Based on the outcome of the scrutiny, wherever deficiencies are observed, the concerned banks must advise RBI on the details and arrange to submit a revised form. |
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| In case, no deficiencies are found, banks would be required to forward a certificate signed by the auditors and the bank CEO to that effect, said the notification. |
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| DTL/NDTL are the amounts collected through savings and fixed deposits by banks. |
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