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SLR Relaxation Withdrawn After Special Term Repo Ends

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2009-10/207 · issued 05 Nov 2009 · ~1 min read

Quick answerRBI withdrew the 1.5% SLR relaxation on NDTL effective October 27, 2009, following the discontinuation of the special term repo facility for banks funding to NBFCs, HFCs, and mutual funds.

What changed

The earlier circular allowed banks to maintain SLR up to 1.5% below the statutory requirement under the special term repo facility. With the discontinuation of that facility on October 27, 2009, this SLR relaxation stands withdrawn from the same date.

What it means for you

Banks must now fully comply with the statutory SLR requirement without the earlier 1.5% cushion. This tightens liquidity management, as the special repo window for funding to NBFCs, HFCs, and mutual funds is also closed.

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

Restore SLR holdings to the full statutory percentage of NDTL immediately.
Review liquidity buffers and adjust investment portfolios to meet SLR compliance.
Assess impact on funding to NBFCs, HFCs, and mutual funds given the repo facility closure.

Who it affects

All scheduled commercial banks (excluding RRBs), Treasury and ALM desks, Banks with exposure to NBFCs, HFCs, and mutual funds

❓ Common questions

Regulatory timeline

Stated effective date effective October 27, 2009
Decoded by BankPulse 2026-06-19 08:23 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What was the SLR relaxation that has been withdrawn?

Banks were allowed to maintain SLR up to 1.5% below the statutory requirement on their net demand and time liabilities, under the special term repo facility.

When did this withdrawal take effect?

The withdrawal is effective from October 27, 2009, the same date the special term repo facility was discontinued.

Does this affect all banks?

Yes, all scheduled commercial banks except Regional Rural Banks are affected by this change.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)

Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)

RBI’s words: “Official withdrawal register entry #1792: DBOD.Ret.BC.No.56/12.02.001/2009-10 — "Section 24 of the Banking Regulation Act, 1949 - Shortfall in Maintenance of Statutory Liquidity Ratio (SLR) - Addition”

📜 Read the original circular — full text as issued by RBI

RBI/2009-10/207
Ref: DBOD.Ret.BC.No.56/12.02.001/2009-10 
 November 05, 2009
 All Scheduled Commercial Banks
(Excluding Regional Rural Banks)
 Dear Sir,
 Section 24 of the Banking Regulation Act, 1949- 
 Shortfall in Maintenance of Statutory Liquidity Ratio (SLR)- 
 Additional Liquidity Support under Liquidity Adjustment Facility (LAF)  
 Please refer to paragraph 2 of our circular DBOD. No. Ret. BC. 74/12.02.001/2008-09 dated November 03, 2008 and RBI Press Release 2008-2009 dated November 28, 2008 on the captioned subject.

Following the issuance of the RBI Circular FMD. MOAG. No. 41/01.01.01/2009-10 dated October 27, 2009 discontinuing the special term repo facility for scheduled commercial banks for funding to mutual funds, non-banking financial companies and housing finance companies, the relaxation in the maintenance of SLR to the extent of up to 1.5 per cent of their net demand and time liabilities (NDTL) stands withdrawn with effect from October 27, 2009.
 Yours faithfully,

 (Vinay Baijal)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2009-10/207 · issued 05 Nov 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=5347&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.