On Friday, the Reserve Bank of India (RBI) released draft guidelines on uniform accounting for repo and reverse repo transactions.
“The liabilities on account of repo borrowing would be included in the net demand and time liabilities (NDTL) calculation for maintenance of cash reserve ratio (CRR). However, inter-bank repo transactions would continue to be netted, as hitherto,” said the RBI in its statement.
The amendment in the accounting norms would bring such transactions on to the balance sheet of the repo participants in its true economic sense, thus enhancing transparency, the central bank said.