The amount of reservable liabilities exempt from reserve requirements. The Federal Reserve indexes the exemption amount annually and uses it with the nonexempt deposit cutoff and the reduced reporting limit to determine each institution's reporting category. Institutions with total deposits less than or equal to the exemption amount are not required to submit an FR 2900 or FR 2910a report. Financial Institutions that are required to submit an FR 2900 are subject to a zero percent reserve requirement on net transaction accounts up to the amount of the exemption.