RBI/2010-11/139
Ref. DBOD No. Ret. BC. 29/12.02.001/2010-11
July 27, 2010
All Scheduled Commercial Banks
(Excluding Regional Rural Banks)
Dear Sir,
Section 24 of the Banking Regulation Act, 1949
Maintenance of Statutory Liquidity Ratio (SLR)
Please refer to our circular DBOD.No.Ret.BC.41/12.02.001/2009-10 dated
September 08, 2009 forwarding the Notification DBOD. No. Ret. BC.
40/12.02.001/2009-10 dated September 08, 2009, on the captioned subject.
- It has been decided that the SLR securities (including margin)
acquired under the Reserve Bank of India (RBI) - Liquidity Adjustment
Facility (LAF), shall not be treated as an eligible asset for the
maintenance of SLR under Section 24 of the BR Act, 1949. Accordingly, in
partial modification of Notification DBOD. No. Ret. BC. 40/12.02.001/2009-10
dated September 08, 2009, we have issued the Notification Ref. DBOD. No.
Ret. BC. 28/12.02.001/2010-11 dated July 27, 2010.
- In terms of para 1.11 (a) of our
Master Circular DBOD. No. Ret. BC.
23/12.01.001/2010-11 dated July 01, 2010, the amount of any loan taken from
the RBI is not included in the Liabilities for computation of Demand and
Time Liabilities (DTL)/ Net Demand and Time Liabilities (NDTL) for the
purpose of maintenance of Cash Reserve Ratio (CRR) and Statutory Liquidity
Ratio (SLR). It is clarified that any funds borrowed from RBI under LAF
window will continue not to form part of liabilities for the purpose of
maintenance of CRR/SLR.
- With a view to disseminating information on the SLR status of a
Government security, it is advised that:
(i) the SLR status of securities issued by the Government of India and the State
Governments will be indicated in the Press Release issued by the Reserve Bank of
India at the time of issuance of the securities; and
(ii) an updated and current list of the SLR securities will be posted on the
Reserve Bank's website (http://www.rbi.org.in/) under the link ';Database on
Indian Economy';.
Yours faithfully,
(B. Mahapatra)
Chief General Manager-In-Charge
Encls : as above
Ref. DBOD. No. Ret. BC. 28/12.02.001/2010-11
July 27, 2010
NOTIFICATION
In exercise of the powers conferred by sub-section (2A) of Section 24 of the
Banking Regulation Act, 1949 (10 of 1949) and in partial modification of the
Notification DBOD.No.Ret. BC.40/12.02.001/2009-10 dated September 08, 2009, the
Reserve Bank hereby specifies that the following proviso shall be inserted after
clause (c) of the said Notification, namely, –
“Provided that the securities (including margin) referred to above, if acquired
under the Reserve Bank – Liquidity Adjustment Facility (LAF), shall not be
treated as an eligible asset for this purpose.”
(Anand Sinha)
Executive Director