Source: Reserve Bank of India · RBI/2009-10/195 · issued 28 Oct 2009 · ~1 min read
Quick answerRBI raised SLR to 25% of NDTL for scheduled commercial banks, effective fortnight starting November 7, 2009. This follows the Second Quarter Review of Monetary Policy 2009-10 and amends the earlier November 2008 SLR circular.
What changed
The Statutory Liquidity Ratio (SLR) for scheduled commercial banks was increased to 25% of net demand and time liabilities (NDTL). This change takes effect from the fortnight beginning November 7, 2009, replacing the previous SLR requirement set in November 2008.
What it means for you
Banks must now hold a higher proportion of their deposits in approved government securities, reducing lendable resources. This move tightens liquidity and supports the government's borrowing program, potentially compressing net interest margins for lenders.
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
Recalibrate your investment portfolio to ensure SLR assets reach 25% of NDTL by November 7, 2009.
Review liquidity projections and adjust short-term funding strategies to accommodate the higher SLR requirement.
Communicate the revised SLR compliance timeline to your treasury and risk management teams.
Monitor fortnightly NDTL calculations to avoid any shortfall in SLR maintenance.
RBI’s words: “in partial modification of the Notification DBOD.No.Ret. BC. 50/12.02.001/2009-10 dated October 28, 2009”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1800: DBOD.No.Ret.BC.50/12.02.001/2009-10 — "Notification - Section 24 of the Banking Regulation Act, 1949 Maintenance of Statutory Liquidity Ratio (SLR)" dated Oct”
📜 Read the original circular — full text as issued by RBI
RBI/2009-10/195
DBOD.Ret.BC. 51/12.02.001/2009-10
October 28, 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. 73/12.02.001/2008-09 dated November 03, 2008 on the captioned subject.
2. As announced in the Second Quarter Review of Monetary Policy 2009-10 released on October 27, 2009, it has been decided to increase the Statutory Liquidity Ratio (SLR) for Scheduled Commercial Banks to 25 per cent of their net demand and time liabilities (NDTL) with effect from the fortnight beginning November 7, 2009.
3. A copy of the relative notification DBOD. No. Ret. BC. 50/12.01.001/2009-10 dated October 28, 2009 is enclosed .
4. Please acknowledge receipt.
Yours faithfully,
(Vinay Baijal)
Chief General Manager
Encl: As above
Ref. DBOD. No. Ret. BC. 50/ 12.02.001/2009-10 October 28, 2009
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 DBOD. Ret. BC. 72/12.02.001/2008-09 dated November 03, 2008, the Reserve Bank of India hereby specifies that with effect from the fortnight beginning November 7, 2009, every scheduled commercial bank shall maintain in India assets as detailed in the Notification DBOD. No. Ret. BC. 40/12.02.001/ 2009-10 dated September 08, 2009, the value of which shall not at the close of business of any day be less than 25 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight.
(Anand Sinha)
Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/195 · issued 28 Oct 2009. The plain-English explanation above is BankPulse’s own independent summary.
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BankPulse Compliance Evidence Pack — generated 03 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=5332&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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