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RBI/2016-17/318
DBR.No.Ret.BC.71/12.02.001/2016-17
June
7, 2017
All Commercial Banks, Primary
(Urban) Co-operative Banks (UCBs),
State and Central Co-operative Banks (StCBs/CCBs)
Madam/Dear Sir,
Section 24 and Section 56 of the
Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio
(SLR)
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.
2. 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
3. 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
DBR.No.Ret.BC.73/12.02.001/2016-17
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 Ref.DBR.No.Ret.BC.63/12.02.001/2015-16
dated December 10, 2015, the Reserve Bank hereby specifies that:
With effect from June 24, 2017,
every commercial bank, primary (urban) co-operative bank, state
co-operative bank and central co-operative bank shall maintain in India
assets (referred to as ‘SLR assets’ in the above Notification) the value of
which shall not, at the close of business on any day, be less than 20.00
per cent of their total net demand and time liabilities in India as on the
last Friday of the second preceding fortnight, valued in accordance with
the method of valuation specified by the Reserve Bank from time to time;
and
All other instructions contained
in the Notification dated December 10, 2015, referred to above, shall
continue to apply.
(Sudarshan
Sen)
Executive Director
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