RRBs - SLR increased
RBI/2009-10/201
RPCD.CO.RRB.BC.No.38 /03.05.28(B)/2009-10
October 29, 2009
The Chairman
All Regional Rural Banks
Dear Sir,
Section 24 of the Banking Regulation Act, 1949
Maintenance of Statutory Liquidity Ratio (SLR) - RRBs
Please refer to our circular RPCD.CO.RRB. BC.58/03.05.28 (B)/2008-09 dated November 3, 2008 on the captioned subject.
2. As announced in the Second Quarter Review of Monetary Policy 2009-10 released on October 27, 2009, it has been decided to increase the Statutory Liquidity Ratio (SLR) for Regional Rural Banks to 25 per cent of their net demand and time liabilities (NDTL) with effect from the fortnight beginning November 7, 2009.
3. A copy of the relative notification RPCD.CO RRB No.37 /03.05.28 (B) / 2009-10 dated October 29, 2009 is enclosed.
4. Please acknowledge receipt to our Regional Office concerned.
Yours faithfully
(R.C.Sarangi)
Chief General Manager
Encl: As above
Ref.RPCD.CO.RRB.NO.37 /03.05.28(B)/2009-10
October 29, 2009
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 and, in partial modification of Notification RPCD.CO.RRBNo.4881/ 03.05.28 (B)/2008-09 dated November 03, 2008, the Reserve Bank of India hereby specifies that with effect from the fortnight beginning November 7, 2009, every Regional Rural Bank shall maintain in India assets as detailed in the 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 25 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
CAclubindia
