RBI/2012-13/229
DBOD.No.Ret.BC.48 /12.02.001/2012-13
September 28, 2012
All Local Area Banks
Dear Sir,
Section 24 of the Banking Regulation Act, 1949
Maintenance of Statutory Liquidity Ratio (SLR) - Local Area Banks
Please refer to our circular DBOD.No.Ret.BC.62/12.02.001/2009-10 dated November 19, 2009 on the captioned subject.
2. It has been decided that Statutory Liquidity Ratio for Local Area Banks be reduced from 25 per cent to 23 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning August 11, 2012.
3. A copy of the relative notification DBOD.No.Ret.BC.47/12.02.001/2012-13 dated September 28, 2012 is enclosed.
Yours faithfully,
(Sujata Lal)
General Manager
Encl: 1
DBOD.No.Ret.BC.47 /12.02.001/2012-13
September 28, 2012
Notification
In exercise of the powers conferred by sub-section (2A) of Section 24 of Banking Regulation Act, 1949 (10 of 1949) as amended from time to time, in partial modification of Notification DBOD.No.Ret.BC.61/12.02.001/2009-10 dated November 19, 2009, the Reserve Bank of India hereby specifies that with effect from the fortnight beginning August 11, 2012, every Local Area Bank shall maintain in India assets as detailed in the Notification DBOD.No.Ret.BC.40/12.02.001/2009-10 dated September 8, 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.
(B.Mahapatra)
Executive Director
CAclubindia
