Home › Circulars › RBI/2010-11/108

SLR Shortfall: Additional LAF Liquidity Support Extended to July 16, 2010

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/108 · issued 02 Jul 2010 · ~2 min read
Quick answerRBI extends temporary additional LAF liquidity support—up to 0.5% of NDTL—until July 16, 2010. Banks can use excess SLR securities as collateral and seek waiver of penal interest for any SLR shortfall arising from this facility.

What changed

The temporary additional liquidity support under LAF, initially allowed from May 28, 2010 to July 2, 2010, has been extended to July 16, 2010. Banks can still avail up to 0.5% of NDTL as extra liquidity against eligible securities beyond their prescribed SLR. Any SLR shortfall due to this facility will be considered for waiver of penal interest on an ad hoc basis.

What it means for you

This extension gives banks two more weeks to manage liquidity pressures without facing penal charges for SLR non-compliance. It signals RBI's continued accommodative stance amid tight liquidity conditions. Banks should factor this into their short-term funding and SLR planning, but note it remains a temporary measure.

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

Who it affects

All Scheduled Commercial Banks, Treasury and ALM desks, Compliance and risk management teams

❓ Common questions

Regulatory timeline

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

What is the maximum additional liquidity a bank can avail under this extended facility?

Banks can avail additional liquidity support up to 0.5% of their Net Demand and Time Liabilities (NDTL) under the LAF, using eligible securities in excess of their prescribed SLR as collateral.

Will banks be penalized for SLR shortfall if they use this facility?

No, banks may seek waiver of penal interest for any SLR shortfall arising from availing this facility, purely as an ad hoc measure.

Until when is this additional liquidity support available?

The facility is extended up to July 16, 2010, from its earlier expiry date of July 2, 2010.

📜 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 #1631: DBOD.No.Ret.BC.24/12.02.001/2010-2011 — "Section 24 of Banking Regulation Act, 1949 - Shortfall in Maintenance of Statutory Liquidity Ratio (SLR) - Additional”
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/108 Ref. DBOD. No. Ret. BC. 24 /12.02.001/2010-2011 July 2, 2010 All Scheduled Commercial Banks Dear Sir, Section 24 of Banking Regulation Act, 1949- Shortfall in Maintenance of Statutory Liquidity Ratio (SLR) - Additional Liquidity support under Liquidity Adjustment Facility (LAF) - Extension Please refer to our circular DBOD.No.Ret.BC.103/12.02.001/2009-2010 dated May 26, 2010 wherein it was advised that Scheduled Commercial Banks may obtain liquidity from the Reserve Bank under the Liquidity Adjustment Facility ( LAF) against collateral of eligible securities  that are in excess of their prescribed Statutory Liquidity Ratio (SLR). In addition, purely as a temporary measure, Scheduled Commercial Banks were allowed to avail additional liquidity support under the LAF to the extent of upto 0.5 per cent of their Net Demand and Time Liabilities (NDTL). The additional liquidity support was made available with effect from the LAF auctions of May 28, 2010 and upto July 2, 2010. 2.  As stated in the Reserve Bank's press release issued today, on the basis of the assessment of the current liquidity situation, it has been decided to extend the aforesaid liquidity support facility up to July 16, 2010. For any shortfall in maintenance of SLR arising out of availment of this facility, banks may seek waiver of penal interest purely as an ad hoc measure. Yours faithfully, (P R Ravi Mohan) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/108 · issued 02 Jul 2010. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SFB Pillar 3 Disclosure Norms Aligned with BaselUCB Deposit Rate Disclosure & Uniformity Rules UpdatedLAB Deposit Rate Disclosure & Uniformity Rules TightenedPayments Banks: Interest Rates Must Match Disclosed ScheduleRBI Updates Bulk Deposit Rate Rules and Disclosure Timing
Browse all departments →

💬 Banker Discussion

Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.

Loading comments…
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=5859&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.
Public beta — plain-English informational summaries. Always verify against the official RBI source (circular number cited on every page) before making compliance, credit, treasury, audit, or operational decisions. · Join our WhatsApp channel ↗
—