RBI/2010-11/290
Ref. DBOD.No.Ret.BC. 63 /12.02.001/2010-11
November 30, 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. 60/12.02.001/2010-11 dated
November 09, 2010 wherein it was advised that Scheduled Commercial Banks may
avail of additional liquidity support under the LAF to the extent of up to 1.0
per cent of their Net Demand and Time Liabilities (NDTL) as on the reporting
Friday of the second preceding fortnight till December 16, 2010. For any
shortfall in maintenance of Statutory Liquidity Ratio (SLR) during November 9 –
December 16, 2010 arising out of availment of this facility, banks may seek
waiver of penal interest purely as an ad hoc, temporary measure.
- As stated in the Press Release issued by the Reserve Bank of India
on November 29, 2010, in order to provide further liquidity comfort, it has
been decided to allow Scheduled Commercial Banks to avail of the additional
liquidity support under the LAF to the extent of up to 2.0 per cent of their
NDTL as on the reporting Friday of the second preceding fortnight with
immediate effect up to January 28, 2011. For any shortfall in SLR
maintenance arising out of availment of this facility, banks may seek waiver
of penal interest on a fortnightly basis purely as an ad hoc, temporary
measure. The liquidity support availed under this facility would, however,
need to be reported on a daily basis.
Yours faithfully,
(B. Mahapatra)
Chief General Manager -in-Charge