RBI asks banks to scrutinise demand, time liabilities calculation

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.

"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.

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.

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.

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.

DTL/NDTL are the amounts collected through savings and fixed deposits by banks.