RBI/2010-11/252
Ref.DBOD.No.Ret.BC.55 /12.02.001/2010-11
November 1, 2010
All Scheduled Commercial Banks
Dear Sir,
Section 24 of Banking Regulation Act, 1949-
Shortfall in Maintenance of Statutory Liquidity Ratio (SLR) – Additional
Liquidity support under Liquidity Adjustment Facility (LAF)
Please refer to our circular DBOD.No.Ret.BC. 54/12.02.001/2010-11 dated
October 29, 2010 on the captioned subject.
- As stated in the Reserve Bank’s press release issued on October 31,
2010, in view of likely persistence of frictional liquidity pressures, it
has been decided to extend the liquidity easing measures announced on
October 29, 2010 on all days during November 1 - 4, 2010. Accordingly,
Scheduled Commercial Banks may avail of additional liquidity support under
the Liquidity Adjustment Facility (LAF) to the extent of up to 1.0 per cent
of their Net Demand and Time Liabilities (NDTL) as on October 8, 2010. As
the LAF auction on November 4, 2010 will be for four days, banks may seek
waiver of penal interest for any shortfall in maintenance of Statutory
Liquidity Ratio (SLR) arising out of availment of this facility up to
November 7, 2010 purely as an ad hoc, temporary measure.
Yours faithfully,
(P R Ravi Mohan)
Chief General Manager