RBI/2010-11/251
Ref.DBOD.No.Ret.BC. 54/12.02.001/2010-11
October 29, 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)
As stated in the Reserve Bank’s press release issued today, in order to
provide liquidity comfort arising out of frictional liquidity pressure, a
special 2-day repo auction under the LAF will be conducted at 10.30 a.m. on
Saturday, October 30, 2010. 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 October 8, 2010. It is advised that for
any shortfall in maintenance of statutory liquidity ratio (SLR) on October
30-31, 2010 arising out of availment of this facility, banks may seek waiver of
penal interest purely as an ad hoc, temporary measure. This facility will be
available only on Saturday, October 30, 2010.
Yours faithfully,
(P R Ravi Mohan)
Chief General Manager