Home › Circulars › RBI/2008-09/297

UCBs: Higher SLR in Govt Securities by 2011

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2008-09/297 · issued 26 Nov 2008 · ~1 min read

Quick answerRBI mandates non-scheduled UCBs to gradually increase SLR holdings in government/approved securities to 25% of NDTL by March 31, 2011, with interim targets for Tier-I banks.

What changed

RBI increased the required proportion of SLR in government/approved securities for non-scheduled UCBs. Tier-I banks must reach 7.5% of NDTL by Sep 2009 and 15% by Mar 2010. Tier-II banks continue at 15% until Mar 2010. All non-scheduled UCBs must hit 25% by Mar 2011.

What it means for you

Non-scheduled UCBs need to shift more funds into safer government securities, reducing lending capacity in the short term. This enhances liquidity and credit quality but may pressure margins. Banks must plan phased investments to meet deadlines without disrupting operations.

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

Calculate current SLR in government securities as % of NDTL for your bank.
For Tier-I UCBs, ensure 7.5% by Sep 2009 and 15% by Mar 2010.
For all non-scheduled UCBs, target 25% by Mar 2011.
Adjust investment portfolio to meet phased targets without breaching other prudential norms.
Acknowledge receipt of this circular to your regional RBI office.

Who it affects

Non-scheduled Urban Cooperative Banks (UCBs), Tier-I non-scheduled UCBs, Tier-II non-scheduled UCBs

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 11:19 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 05 Aug 2026, 04:00 IST

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

What is the final SLR requirement in government securities for non-scheduled UCBs?

By March 31, 2011, all non-scheduled UCBs must maintain SLR in government and other approved securities at 25% of their NDTL.

Are scheduled UCBs covered by this circular?

No, this circular applies only to non-scheduled urban cooperative banks. Scheduled UCBs are not mentioned in the source.

What happens if a Tier-I UCB misses the September 2009 target?

The circular does not specify penalties, but banks should aim to meet the phased targets to avoid regulatory action. Contact your regional RBI office for guidance.

📜 This document’s life story (1 recorded event, 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 #2023: UBD(PCB)CO.BPD.Cir.No.28/16.26.00/2008-09 — "Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) Section 24 - Investment in Government and ”

📜 Read the original circular — full text as issued by RBI

RBI/2008-09/297
 UBD (PCB) CO BPD Cir No: 28 /16.26.00/2008-09 
 November 26, 2008 
 Chief Executive Officer of
 All Primary (urban) Cooperative Banks 
 Dear Sir/Madam, 
 Banking Regulation Act, 1949 (As Applicable to Co-operative Societies) Section 24- Investment in Government and other approved securities by
 Urban Co-operative Banks (UCBs) 
 Please refer to our circular UBD.BR.Cir.19/16.26.00/2001-02  dated October 22, 2001 on the captioned subject.
 2. On a review, it has been decided to increase the proportion of SLR holdings in the form of government and other approved securities as percentage of NDTL in the following manner, which should be achieved by non-scheduled urban co-operative banks by end-March 2011.
 (i) Non-scheduled UCBs in Tier I shall maintain SLR in the form of Government and other approved securities not less than 7.5 per cent of their NDTL by September 30, 2009 and 15 per cent of their NDTL by March 31, 2010.
 (ii) The current prescription of holding SLR in Government and other approved securities not less than 15 per cent of their NDTL in respect of non-scheduled
 UCBs in Tier-II shall continue up to March 31, 2010.
 3. From March 31, 2011 onwards all non-scheduled UCBs shall be required to maintain SLR in Government and other approved securities up to 25 per cent of their NDTL.
 4. Please acknowledge receipt to our Regional Office concerned.
 Yours faithfully,
 (A. K. Khound)
 Chief General Manager in-Charge

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/297 · issued 26 Nov 2008. The plain-English explanation above is BankPulse’s own independent summary.

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BankPulse Compliance Evidence Pack — generated 05 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly).
Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=4734&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.