RBI/2010-11/516
Ref. DBOD No. Ret. BC. 92 /12.02.001/2010-11

May 09, 2011

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 and circular DBOD No.Ret.BC 29 /12.02.001/2010-11dated July 27, 2010 forwarding Notification DBOD No.Ret.BC 28 /12.02.001/2010-11dated July 27,2010 on the captioned subject.

2. As announced in the Reserve Bank of India's Annual Monetary Policy Statement 2011-12 on May 03, 2011 Scheduled Commercial Banks (SCBs) may borrow overnight up to one per cent of their respective Net Demand and Time Liabilities (NDTL) under the Marginal Standing Facility (MSF)Scheme  effective from the fortnight beginning on May 07, 2011. Operating instructions in this regard are contained in circular FMD No.59/01.18.001/2010-11 dated May 9, 2011.

3. We have issued a new Notification DBOD No.Ret.BC 91 /12.02.001/2010-11.dated May 09, 2011 superseding the existing Notification Ref.DBOD.No.Ret.BC.40/12.02.001/2009-10 dated September 8, 2009 (which was partially modified by Notification DBOD. No. Ret. BC 28 /12.02.001/2010-11 dated July 27, 2010) on the maintenance of assets for the purpose of computing the Statutory Liquidity Ratio by Scheduled Commercial Banks. A copy of the new Notification referred to above is enclosed.

Yours faithfully,

(P.R. Ravi Mohan)
Chief General Manager