Maintenance of Statutory Liquidity Ratio

posted 21 May 2011, 03:49 by CA Naresh Shah


In exercise of the powers conferred by sub-section (2A) of Section 24 of Banking Regulation Act, 1949 (10 of 1949) and in partial modification of the Notification Ref.DBOD.No.Ret.BC.40/12.02.001/2009-10 dated September 8, 2009 and Notification DBOD. No. Ret. BC 28 /12.02.001/2010-11 dated July 27, 2010 the Reserve Bank of India hereby specifies that every scheduled commercial bank shall continue to maintain in India assets, as detailed below, the value of which shall not, at the close of business on any day, be less than 24 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight as prescribed vide notification DBOD.No.Ret.BC.66/12.02.001/2010-11 dated December 16, 2010 valued in accordance with the method of valuation specified by the Reserve Bank of India from time to time:

(a) Cash  or

(b) Gold valued at a price not exceeding the current market price, or

(c) Investment in the following instruments which will be referred to as "Statutory Liquidity Ratio (SLR) securities":

(i) Dated securities issued up to May 6, 2011 as listed in the Annex;

(ii) Treasury Bills of the Government of India;

(iii) Dated securities of the Government of India issued from time to time under the market borrowing programme and the Market Stabilization Scheme;

(iv) State Development Loans (SDLs) of the State Governments issued from time to time under the market borrowing programme; and

(v) Any other instrument as may be notified by the Reserve Bank of India.

CA Naresh Shah,
21 May 2011, 03:51