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

RBI/2013-14/626
RPCD.CO.RRB.BC.No.106/03.05.33/2013-14

June 4, 2014

The Chairmen
All Regional Rural Banks

Dear Sir/Madam,

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

Please refer to our circular RPCD.CO.RRB.BC.No.22/03.05.28(B)/2012-13 dated August 1,  2012 on the captioned subject.

2. As announced in the Second Bi-monthly Monetary Policy statement 2014-15 by Reserve Bank of India on June 3, 2014, it has been decided to reduce the Statutory Liquidity Ratio (SLR) of Regional Rural Banks from 23 per cent of the Net Demand and Time Liabilities (NDTL) to 22.50 per cent with effect from the fortnight beginning June 14, 2014.

3. A copy of the relative notification RPCD.CO.RRB.No.107/03.05.33/2013-14 dated June 4, 2014 is enclosed.

4. Please acknowledge receipt to our Regional Office concerned.

Yours faithfully,

(A.Udgata)
Principal Chief General Manager

RPCD.CO.RRB.No. 107/03.05.33/2013-14

June 4, 2014

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.21/03.05.28(B)/2012-13 dated August 1, 2012, the Reserve Bank of India hereby specifies that with effect from the fortnight beginning June 14, 2014, every Regional Rural Bank shall maintain in India assets as detailed in notification RPCD.CO.RRB.No.35/03.05.28(B)/2009-10 dated October 29, 2009, the value of which shall not at the close of business of any day be less than 22.50 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight.

Dr.(Smt.) Deepali Pant Joshi
Executive Director