Section 24 of the Banking Regulation Act, 1949 - Maintenance of SLR - MSF - return to the normal dispensation

Last updated: 11 December 2021

Notice Date : 10 December 2021

Reserve Bank of India

RBI/2021-22/138
DOR.RET.REC.73/12.01.001/2021-22

December 10, 2021

All Scheduled Banks

Madam/Sir,

Section 24 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR) – Marginal Standing Facility (MSF) – return to the normal dispensation

Please refer to circular DOR.RET.REC.36/12.01.001/2021-22 dated August 09, 2021 and paragraph 15(i) of the Master Direction DOR.No.RET.REC.32/12.01.001/2021-22 dated July 20, 2021, on Marginal Standing Facility (MSF), wherein the banks were allowed to avail of funds under the MSF by dipping into the Statutory Liquidity Ratio (SLR) up to three per cent of their net demand and time liabilities (NDTL) outstanding at the end of the second preceding fortnight. This facility, which was initially available up to June 30, 2020, was later extended up to December 31, 2021 vide circular DOR.RET.REC.36/12.01.001/2021-22 dated August 09, 2021.

2. As announced in the Governor’s Statement dated December 08, 2021, it is proposed to return to the normal dispensation. Accordingly, banks will be able to dip into the Statutory Liquidity Ratio (SLR) up to two percent of NDTL instead of three percent for overnight borrowing under the MSF with effect from January 1, 2022.

Yours faithfully,

(Thomas Mathew)
Chief General Manager

Guest

Notification No : RBI/2021-22/138 DOR.RET.REC.73/12.01.001/2021-22
Published in Community & General
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12207&Mode=0

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