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SLR Shortfall Waiver for LAF Support (Oct 2010)

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2010-11/251 · issued 29 Oct 2010 · ~2 min read

Quick answerRBI allowed banks to borrow up to 1% of NDTL via a special 2-day repo on Oct 30, 2010, and waived penal interest for any SLR shortfall on Oct 30-31 as a temporary measure to ease frictional liquidity pressure.

What changed

RBI announced a special 2-day repo auction under LAF on Saturday, October 30, 2010, at 10:30 AM. Banks could avail additional liquidity support up to 1% of their NDTL as on October 8, 2010. For any SLR shortfall on October 30-31 due to this facility, RBI allowed waiver of penal interest as an ad hoc, temporary measure.

What it means for you

This was a short-term liquidity injection to address frictional pressure, giving banks breathing room without penalty for SLR non-compliance. Banks could use the extra funds for two days without incurring penal charges, but the facility was strictly limited to October 30, 2010.

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

Participate in the special 2-day repo auction on October 30, 2010, at 10:30 AM if additional liquidity is needed.
Calculate additional support as up to 1% of NDTL as on October 8, 2010.
Document any SLR shortfall on October 30-31 arising from this facility for waiver of penal interest.
Note that this is a one-time, ad hoc measure valid only for October 30, 2010.

Who it affects

All Scheduled Commercial Banks, Treasury and liquidity management teams, Compliance departments handling SLR reporting

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-19 03:59 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Status change: withdrawn 03 Aug 2026, 04:00 IST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 maximum amount banks could borrow under this facility?

Banks could avail additional liquidity support up to 1% of their net demand and time liabilities (NDTL) as on October 8, 2010.

Was the penal interest waiver automatic for any SLR shortfall?

No, banks had to seek waiver of penal interest for SLR shortfall on October 30-31 arising from this facility, and it was purely an ad hoc, temporary measure.

Could banks use this facility on any other day?

No, the special repo auction and the associated SLR shortfall waiver were available only on Saturday, October 30, 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 #1596: DBOD.No.Ret.BC.54/12.02.001/2010-11 — "Section 24 of Banking Regulation Act, 1949 - Shortfall in Maintenance of Statutory Liquidity Ratio (SLR) - Additional L”

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

RBI/2010-11/251
 Ref.DBOD.No.Ret.BC. 54/12.02.001/2010-11
 October 29, 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) 
 As stated in the Reserve Bank’s press release issued today, in order to provide liquidity comfort arising out of frictional liquidity pressure, a special 2-day repo auction under the LAF will be conducted at 10.30 a.m. on Saturday, October 30, 2010. Scheduled Commercial Banks may avail of additional liquidity support under the LAF to the extent of up to 1.0 per cent of their net demand and time liabilities (NDTL) as on October 8, 2010. It is advised that for any shortfall in maintenance of statutory liquidity ratio (SLR) on October 30-31, 2010 arising out of availment of this facility, banks may seek waiver of penal interest purely as an ad hoc, temporary measure. This facility will be available only on Saturday, October 30, 2010.
 Yours faithfully,
 (P R Ravi Mohan) 
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/251 · issued 29 Oct 2010. 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=6063&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.