Module: | Priority Sector, Consumer Protection & Digital Lending
Q81: Evaluate the following statements regarding 'Holidays' and Reporting:
1. If the 'Reporting Friday' is a public holiday under the Negotiable Instruments Act, the NDTL figures of the previous working day are used.
2. Banks do not have to maintain CRR on holidays.
2. Banks do not have to maintain CRR on holidays.
✅ Correct Answer: A
The correct answer is A. Statement 1 is True: The RBI guidelines prescribe a clear contingency for reporting.
If the designated 'Reporting Friday' happens to fall on a declared public holiday under the Negotiable Instruments (NI) Act, 1881, banks are required to utilize the Net Demand and Time Liabilities (NDTL) figures as computed at the close of business on the immediately preceding working day (usually Thursday) for their CRR and SLR maintenance calculations.
Statement 2 is False: The mandate to maintain statutory reserves is absolute and continuous.
Banks are legally required to maintain their required CRR and SLR balances on every single calendar day of the fortnight, which strictly includes all Sundays, bank holidays, and national public holidays.
The requirement never pauses.
If the designated 'Reporting Friday' happens to fall on a declared public holiday under the Negotiable Instruments (NI) Act, 1881, banks are required to utilize the Net Demand and Time Liabilities (NDTL) figures as computed at the close of business on the immediately preceding working day (usually Thursday) for their CRR and SLR maintenance calculations.
Statement 2 is False: The mandate to maintain statutory reserves is absolute and continuous.
Banks are legally required to maintain their required CRR and SLR balances on every single calendar day of the fortnight, which strictly includes all Sundays, bank holidays, and national public holidays.
The requirement never pauses.