Local Area Banks - SLR reduced

Last updated: 29 September 2012

Notice Date : 28 September 2012

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