What changed
The SLR requirement for RRBs was increased from the previous level to 25% of their net demand and time liabilities. This change takes effect from the fortnight beginning November 7, 2009, superseding the earlier notification of November 3, 2008.
What it means for you
RRBs must now hold a higher proportion of their deposits in approved securities, reducing lendable resources. This aligns RRBs with the broader monetary tightening stance and may compress their net interest margins as they adjust asset portfolios.
What you must do
- Recalibrate your investment portfolio to ensure SLR compliance at 25% of NDTL from the fortnight starting November 7, 2009.
- Review your NDTL calculations as on the last Friday of the second preceding fortnight to determine the exact SLR requirement.
- Communicate the revised SLR mandate to your treasury and compliance teams immediately.
- Acknowledge receipt of this circular to your respective RBI Regional Office.
Who it affects
All Regional Rural Banks, Treasury departments of RRBs, Compliance teams of RRBs
What is the new SLR percentage for RRBs?
The SLR for RRBs has been increased to 25% of their net demand and time liabilities (NDTL), effective from the fortnight beginning November 7, 2009.
Which circular does this notification modify?
This notification partially modifies the earlier notification RPCD.CO.RRB.No.4881/03.05.28(B)/2008-09 dated November 3, 2008.
How should RRBs calculate the required SLR amount?
The SLR amount must be at least 25% of the total NDTL in India as on the last Friday of the second preceding fortnight, maintained at the close of business each day.