SLR Maintenance: Updated Eligible Securities List (2009)

RBI/2009-10/150 Ref. DBOD No. Ret. BC. 41/12.02.001/2009-10 September 08, 2009 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. Ret. BC. 62/12.02.001/2007-08 dated February 13, 2008 forwarding the notification DBOD. No. Ret. BC. 61/12.02.001/2007-08 dated February 13, 2008, on the captioned subject. 2. In partial modification of the notifications DBOD. No. Ret. BC. 61/12.02.001/2007-08 dated February 13, 2008 referred to above, we have issued the notification Ref. DBOD. No. Ret. BC. 40 /12.02.001/2009-10 dated September 08, 2009 ( enclosed ) enumerating the form and manner of the assets to be maintained by the scheduled commercial banks  for the purpose of Section 24 of the Banking Regulation Act, 1949. An updated list of securities issued up to September 8, 2009, (including those listed in the Annex to the February 13, 2008 notification), eligible for Statutory Liquidity Ratio (SLR) is given in the Annex to the enclosed Notification. 3. The Statutory Liquidity Ratio for scheduled commercial banks remains unchanged at 24 per cent as prescribed vide the notification DBOD. No. Ret. BC. 72/12.02.001/2008-09 dated November 3, 2008. 4. With a view to disseminating information on the SLR status of a Government security, it has been decided that: (i) the SLR status of securities issued by the Government of India and the State Governments will be indicated in the Press Release issued by the Reserve Bank of India at the time of issuance of the securities; and (ii) an updated and current list of the SLR securities will be posted on the Reserve Bank's website ( www.rbi.org.in ) under the link "Database on Indian Economy". 5. In case any clarification is required regarding the SLR status of a security, a reference may please be made to the Chief General Manager-in-charge, Department of Banking Operations and Development, Reserve Bank of India, Central Office, Returns Division, World Trade Centre, Cuffe Parade, Mumbai 400005. Yours faithfully, (Vinay Baijal) Chief General Manager Encls: as above Ref.DBOD.No.Ret.BC.40/12.02.001/2009-10 September 08, 2009 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 the Notification DBOD.No.Ret. BC. 61/12.02.001/2007-08 dated February 13, 2008, 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 24 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight as prescribed vide notification DBOD.No.Ret.BC. 72/12.02.001/2008-09 dated November 3, 2008, 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": Dated securities issued up to September 8, 2009 as listed in the Annex ; Treasury Bills of the Government of India; Dated securities of the Government of India issued from time to time under the market borrowing programme and the Market Stabilization Scheme; State Development Loans (SDLs) of the State Governments issued from time to time under the market borrowing programme; and Any other instrument as may be notified by the Reserve Bank of India. Explanations: A. "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. B. "market borrowing programme" shall mean the domestic rupee loans raised by the Government of India and the State Governments from the public and managed by the Reserve Bank of India through issue of marketable securities, governed by the Government Securities Act, 2006 and the Regulations framed thereunder, through an auction or any other method, as specified in the Notification issued in this regard. C. In computing the amount for the above purpose, the following shall be deemed to be cash maintained in India: 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; 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 Net balances in current accounts with other scheduled commercial banks in India. (H. R. Khan) Executive Director

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/150 · issued 08 Sep 2009. The plain-English explanation above is BankPulse’s own independent summary.

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