Section 24 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR) – Marginal Standing Facility (MSF) - Extension of Relaxation

Last updated: 11 August 2021

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The Reserve Bank of India (RBI) has extended the relaxation on the Marginal Standing Facility (MSF) for scheduled banks. This allows banks to continue dipping into their Statutory Liquidity Ratio (SLR) by an additional one per cent of their net demand and time liabilities (NDTL). This facility, originally set to expire on September 30, 2021, has now been extended for a further three months, until December 31, 2021. The extension aims to provide continued comfort to banks regarding their liquidity requirements and help them meet their Liquidity Coverage Ratio (LCR) obligations.

RBI/2021-22/82 DOR.RET.REC.36/12.01.001/2021-22 August 09, 2021 All Scheduled Banks Madam/Sir Section 24 of the Banking Regulation Act, 1949 Maintenance of Statutory Liquidity Ratio (SLR) Marginal Standing Facility (MSF) - Extension of Relaxation Please refer tocircular DOR.No.Ret.BC.36/12.01.001/2020-21 dated February 05, 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

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FAQ :

The MSF relaxation allows banks to avail funds by dipping into their Statutory Liquidity Ratio (SLR) up to an additional one per cent of their net demand and time liabilities (NDTL), making a cumulative three per cent available.

All scheduled banks are eligible to avail of this MSF relaxation.

The MSF relaxation has been extended until December 31, 2021.

The extension is intended to provide comfort to banks regarding their liquidity requirements and to enable them to meet their Liquidity Coverage Ratio (LCR) requirements.

The facility was previously extended up to September 30, 2021.

Notification No : RBI/2021-22/82 DOR.RET.REC.36/12.01.001/2021-22
Source : https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12142&Mode=0

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