RBI/2007-2008/236
Ref.DBOD
No. Ret.BC. 62/12.02.001/2007-08
February 13, 2008
Magha
24, 1929 (Saka)
All Scheduled Commercial Banks
(excluding Regional Rural
Banks)
Madam/Dear Sir,
Section 24 of the Banking Regulation Act,
1949 Maintenance of Statutory Liquidity Ratio (SLR)
Please
refer to our circular DBOD. No. BC. 137/12.02.001/97-98 dated October 21, 1997
on the captioned subject.
The Banking Regulation (Amendment)
Act, 2007 replacing the Banking Regulation (Amendment) Ordinance, 2007 came into
effect from January 23, 2007. Consequent upon amendment to Section 24 of the Banking
Regulation Act, 1949 all scheduled commercial banks shall continue to maintain
a uniform statutory liquidity ratio (SLR) of 25 per cent on their total net demand
and time liabilities in the assets as specified in the enclosed notification No.
DBOD.Ret.BC.61/ 12.02.001/2007-08 dated February 13,
2008.
Yours faithfully,
(Vinay Baijal)
Chief General Manager
Ref.DBOD.No.Ret.BC.
61/12.02.001/2007-08
February 13, 2008
Magha 24, 1929
(saka)
NOTIFICATION
In exercise
of the powers conferred by sub-section (2A) of Section 24 of Banking Regulation
Act, 1949 (10 of 1949) and, in partial modification of Notification DBOD No. BC.117/11.02.001/97-98
dated October 21, 1997, the Reserve Bank of India hereby specifies that every
scheduled commercial bank shall continue to maintain in India assets as detailed
below, the value of which shall not, at the close of business on 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, valued in accordance with the method
of valuation specified by the Reserve Bank of India from time to time:
(a)
Cash, or
(b) Gold valued at a price not exceeding the current market price,
or
(c) Unencumbered investment in the following instruments which will be referred
to as 'statutory liquidity ratio (SLR) securities':
i. Dated
securities as per the list given in the Annex;
ii.
All Treasury Bills already issued, and to be issued in future, by the Government
of India;
iii. Dated Securities to be issued in future by
the Government of India under the market borrowing programme and under the market
stabilization scheme with SLR status incorporated in the relevant notification;
iv.
State Development Loans to be issued in future by State Governments under their
market borrowing programme, with SLR status incorporated in the relevant notification;
and
v. Any other instrument as notified in future by RBI
for SLR status.
Explanation: 'unencumbered investment'
of a banking company shall include its investment in the aforesaid securities
lodged with another institution for an advance or any other credit arrangement
to the extent to which such securities have not been drawn against or availed
of.
In computing the amount for the above purpose, the following
shall be deemed to be cash maintained in India:
(i)The deposit
required under sub-section (2) of Section 11 of the Banking Regulation Act, 1949
to be made with the Reserve Bank by a banking company incorporated outside India;
(ii)
Any balances maintained by a scheduled bank with the Reserve Bank in excess of
the balance required to be maintained by it under Section 42 of the Reserve Bank
of India Act, 1934 (2 of 1934); and
(iii) Net balances in
current accounts with other scheduled commercial banks in India.
(Anand
Sinha)
Executive Director