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RBI Circular No: RBI/2016-17/318 (07-Jun-17) Section 24 and Section 56 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR)

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DBR.No.Ret.BC.71/12.02.001/2016-17

All Commercial Banks, Primary (Urban) Co-operative Banks (UCBs),

State and Central Co-operative Banks (StCBs/CCBs)

Madam/Dear Sir,

Please refer to our circular DBR.No.Ret.BC.64/12.01.001/2015-16 dated December 10, 2015, on maintenance of Statutory Liquidity Ratio under Section 24 and Section 56 of the Banking Regulation Act, 1949.

  1. As announced in the Second Bi-Monthly Monetary Policy Statement 2017-18 of the Reserve Bank of India today, it has been decided to reduce the Statutory Liquidity Ratio (SLR) of commercial banks, primary (urban) co-operative banks (UCBs), state co-operative banks and central co-operative banks from 20.5 per cent of their Net Demand and Time Liabilities (NDTL) to 20.00 per cent from the fortnight commencing June 24, 2017. A copy of the relative notification DBR.No.Ret.BC.73/12.02.001/2016-17 dated June 7, 2017, applicable to the banks is enclosed

  2. It is clarified that notwithstanding the reduction in the SLR, the ceiling on amount of SLR securities that can be held under ''Held to Maturity'' category remains unchanged.

Yours faithfully,

S.S. Barik

Chief General Manager in-Charge

Encl: As above

June 7, 2017

Notification

In exercise of the powers conferred by sub-section (2A) of Section 24 read with Section 51 and Section 56 of the Banking Regulation Act, 1949 (10 of 1949) and in partial modification of the Notification...

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