RBI Notification for phased reduction in Maintenance of Statutory Liquidity Ratio (SLR) u/s 24 & 56 of Banking Regulation Act, 1949
The RBI vide Notification dt. 10 Dec., 2015 has notified plan for phased reduction in Maintenance of Statutory Liquidity Ratio (SLR) by the banks u/s 24 & 56 of Banking Regulation Act, 1949.
In line with the announcements made in the fourth Bi-Monthly Monetary Policy Statement 2015-16 by the RBI on September 29, 2015, it has been decided by the RBI to reduce the Statutory Liquidity Ratio (SLR) of scheduled commercial banks, local area banks, primary (Urban) co-operative banks (UCBs), state co-operative banks and central co-operative banks from 21.5 per cent of their Net Demand and Time Liabilities (NDTL) to:
(i) 21.25 per cent from April 2, 2016;
(ii) 21.00 per cent from July 9, 2016;
(iii) 20.75 per cent from October 1, 2016; and
(iv) 20.50 per cent from January 7, 2017
It may be noted that recently the RBI has moved to issuing a single regulation for the commercial banks, Primary (Urban) Co-operative Banks and State and Central Co-operative Banks.