What changed
RBI issued a partial modification to the February 13, 2008 notification on SLR asset maintenance, providing an updated list of eligible securities issued up to September 8, 2009. The SLR rate remains at 24% as prescribed in November 2008. RBI also decided to indicate SLR status of government securities in press releases at issuance and post the updated list on its website.
What it means for you
Banks must refer to the new annex for eligible SLR securities, ensuring their statutory liquidity compliance is accurate. The unchanged 24% SLR means no change in liquidity requirements, but the updated list may affect which securities banks can hold for SLR. The move to publish SLR status online improves transparency and helps banks verify eligibility easily.
What you must do
- Update your SLR compliance records with the new list of eligible securities issued up to September 8, 2009.
- Verify SLR status of government securities using RBI press releases and the Database on Indian Economy link.
- Ensure SLR holdings are at least 24% of net demand and time liabilities as per the prescribed valuation method.
- Contact RBI's Department of Banking Operations and Development for any clarifications on SLR status of specific securities.
Who it affects
All scheduled commercial banks (excluding Regional Rural Banks), Treasury and compliance departments of banks, Bank auditors and regulators monitoring SLR compliance
What is the current SLR rate for scheduled commercial banks?
The SLR rate remains unchanged at 24% of net demand and time liabilities, as prescribed in the November 3, 2008 notification.
How can I check if a government security is SLR-eligible?
RBI will indicate SLR status in the press release at the time of issuance, and an updated list is posted on the RBI website under 'Database on Indian Economy'.
What assets qualify for SLR maintenance?
Cash, gold valued at current market price, and unencumbered investments in specified SLR securities like dated securities, Treasury Bills, Government of India dated securities, State Development Loans, and other instruments notified by RBI.