Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR)

Last updated: 03 August 2012

Notice Date : 01 August 2012

RBI/2012-13/159
RPCD.CO.RRB. BC. No.22/03.05.28(B)/2012-13

August 01, 2012

All Regional Rural Banks

Dear Sir,

Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR)

Please refer to our circular RPCD. CO. RRB. BC. No. 43 / 03.05.28(B)/ 2010-11 dated December 27, 2010, on the captioned subject.

2. As announced in the First-Quarter Review of the Monetary Policy 2012-13 on July 31, 2012, it has been decided to reduce the Statutory Liquidity Ratio (SLR) for Regional Rural Banks from 24 per cent of their Net Demand and Time Liabilities (NDTL) to 23 per cent with effect from the fortnight beginning August 11, 2012.

3. A copy of the relative notification RPCD. CO. RRB. No.21/ 03.05.28(B) / 2012-13 dated August 01, 2012 is enclosed

4. Please acknowledge receipt.

Yours faithfully,

(C.D.Srinivasan)
Chief General Manager

Encl.: As above

RPCD.CO.RRB. No. 21 / 03.05.28(B)/ 2012-13

August 1, 2012

NOTIFICATION

In exercise of the powers conferred by sub-section (2A) of Section 24 of the Banking Regulation Act, 1949 (10 of 1949) and, in partial modification of the notification RPCD. CO. RRB. No. 42/03.05.28(B)/ 2010-11 dated December 27, 2010, the Reserve Bank of India hereby specifies that with effect from the fortnight beginning August 11, 2012, every Regional Rural Bank shall maintain in India assets as detailed in notification RPCD. CO. RRB. No. 35/ 03.05.28(B)/ 2010-11 dated October 29, 2009, the value of which shall not at the close of business of any day be less than 23 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight.

(V.K.Sharma)
Executive Director