HomeCirculars › RBI/2008-09/263

RRB SLR reduced from 25% to 24% of NDTL

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2008-09/263 · issued 03 Nov 2008 · ~1 min read
Quick answerRBI reduced SLR for Regional Rural Banks from 25% to 24% of NDTL, effective fortnight starting November 8, 2008, to ease liquidity amid macroeconomic conditions.

What changed

The Statutory Liquidity Ratio (SLR) for Regional Rural Banks was reduced from 25% to 24% of their net demand and time liabilities (NDTL). This change takes effect from the fortnight beginning November 8, 2008, as per the notification dated November 3, 2008.

What it means for you

RRBs now need to hold 1% less in prescribed liquid assets against their deposits, freeing up funds for lending or other deployment. This move was prompted by a review of macroeconomic and liquidity conditions in global and domestic markets, aiming to support credit flow and ease pressure on RRBs.

Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.

What banks were required to do at the time

Who it affects

All Regional Rural Banks (RRBs), RBI Regional Offices overseeing RRBs

❓ Common questions

Regulatory timeline

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the new SLR percentage for RRBs?

The SLR for RRBs has been reduced from 25% to 24% of their net demand and time liabilities (NDTL), effective from the fortnight beginning November 8, 2008.

Why was the SLR reduced for RRBs?

The reduction was based on a review of current and evolving macroeconomic conditions and liquidity in global and domestic financial markets, as outlined in RBI's press release dated November 1, 2008.

When does the new SLR requirement become effective?

The revised SLR of 24% applies from the fortnight starting November 8, 2008.

📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #2051: RPCD.CO.RRB.BC.No.58/03.05.28(B)/2008-09 — "Section 24 of the Banking Regulation Act, 1949 Maintenance of Statutory Liquidity Ratio (SLR) - RRBs" dated Novemb”
Partially modified by RRB CRR Cut: 50 bps Reduction to 5%
RBI’s words: “in partial modification of the earlier notification RPCD.CO.RRB.No.4882/ 03.05.28(B)/2008-09 dated November 3, 2008”
📜 Read the original circular — full text as issued by RBI
RBI/2008-09/263 RPCD.CO.RRB.BC. No.58 /03.05.28 (B)/2008-09 November 3, 2008 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.No.BC.47/03.05.28 (B)/2007-08(RBI/2007-08/237) dated February 14, 2008  on the captioned subject. 2. On a review of current and evolving macroeconomic situation and liquidity conditions in the global and domestic financial markets, and as set out in the  RBI Press Release 2008-2009/603 dated November 01, 2008 , it has been decided that Statutory Liquidity Ratio (SLR) for Regional Rural Banks be reduced from 25 per cent to 24 per cent of their net demand and time liabilities (NDTL) with effect from the fortnight beginning November 8, 2008. 3. A copy of the relative notification  RPCD RRB.CO No.4881/ 03.05.28(B) / 2008 -09 dated  November 3, 2008 is enclosed. 4. Please acknowledge receipt to our Regional Office concerned. Yours faithfully (B.P. Vijayendra) Chief General Manager RPCD.CO.RRB. No.4881/ 03.05.28(B)/2008-09 November 3, 2008 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.RRB. No.8483 / 03.05.28(B)/2007-08 dated February 14, 2008 , the Reserve Bank of India hereby specifies that with effect from the fortnight beginning November 8, 2008, every Regional Rural Bank shall maintain in India assets as detailed in the Notification RPCD.CO.RRB.No. 8483 / 03.05.28 (B) / 2007-08 dated  February 14, 2008, the value of which shall not at the close of business of any day be less than 24 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight. (V.S.Das) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/263 · issued 03 Nov 2008. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4595&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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