What changed
RBI issued a notification partially modifying the earlier February 14, 2008 circular on SLR for RRBs. The key change is the inclusion of an updated list of eligible SLR securities, covering dated securities issued up to September 8, 2009. Additionally, RBI will now indicate SLR status of government securities in press releases and maintain an updated list on its website.
What it means for you
RRBs must ensure their SLR holdings comply with the updated list of eligible securities. The 24% SLR requirement remains unchanged. Banks should refer to the new annex for eligible dated securities and can verify SLR status via RBI press releases or the 'Database on Indian Economy' link on the RBI website.
What you must do
- Update your SLR portfolio to include only securities listed in the new annex (issued up to September 8, 2009) and other eligible instruments like T-bills, dated GOI securities, SDLs, etc.
- Verify SLR status of any government security using RBI press releases at issuance or the updated list on the RBI website.
- Ensure SLR compliance at 24% of net demand and time liabilities as per the valuation method prescribed by RBI.
- For clarifications on SLR status of a security, contact the Chief General Manager, Rural Planning & Credit Department, RBI, Mumbai.
Who it affects
All Regional Rural Banks (RRBs) in India, Treasury and compliance departments of RRBs, RBI's Rural Planning & Credit Department
What is the SLR requirement for RRBs under this circular?
The SLR requirement remains at 24% of total net demand and time liabilities in India, as prescribed earlier. This circular only updates the list of eligible securities.
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. An updated list is also available on the RBI website under 'Database on Indian Economy'.
Does this circular change the valuation method for SLR assets?
No, the valuation method remains as specified by RBI from time to time. This circular only updates the list of eligible securities and provides guidance on SLR status dissemination.