Home › Circulars › RBI/2010-11/252

SLR Shortfall: Additional LAF Support Extended to Nov 4

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/252 · issued 01 Nov 2010 · ~2 min read
Quick answerRBI extends additional LAF support up to 1% of NDTL (as on Oct 8, 2010) from Nov 1-4, 2010, with waiver of penal interest for SLR shortfalls arising from this facility until Nov 7, 2010, as a temporary measure to ease frictional liquidity pressures.

What changed

The RBI extended the liquidity easing measures announced on October 29, 2010, to cover all days from November 1 to November 4, 2010. Banks can now avail additional LAF support up to 1% of NDTL (as on October 8, 2010) during this period, and for the LAF auction on November 4, 2010 (covering four days), banks may seek waiver of penal interest for any SLR shortfall arising from availment of this facility up to November 7, 2010.

What it means for you

This temporary measure provides banks with extra liquidity headroom to manage frictional pressures without incurring penalties for SLR non-compliance. It signals RBI's proactive stance to support banking system stability during tight liquidity conditions, but banks must treat this as an ad hoc facility and plan for normalization.

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 departments managing LAF auctions, Compliance teams handling SLR maintenance

❓ 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 LAF support a bank can avail under this circular?

Banks can avail additional liquidity support up to 1.0% of their Net Demand and Time Liabilities (NDTL) as on October 8, 2010, during November 1-4, 2010.

Is the penal interest waiver for SLR shortfall automatic?

The waiver is available for any SLR shortfall arising from availing this facility, but only up to November 7, 2010, and as an ad hoc, temporary measure. Banks should ensure proper documentation.

Does this circular apply to all scheduled commercial banks?

Yes, it applies to all scheduled commercial banks as addressed in the circular.

📜 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 #1595: DBOD.No.Ret.BC.55/12.02.001/2010-11 — "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/2010-11/252 Ref.DBOD.No.Ret.BC.55 /12.02.001/2010-11 November 1, 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) Please refer to our circular DBOD.No.Ret.BC. 54/12.02.001/2010-11 dated October 29, 2010 on the captioned subject. 2. As stated in the Reserve Bank’s press release issued on October 31, 2010, in view of likely persistence of frictional liquidity pressures, it has been decided to extend the liquidity easing measures announced on October 29, 2010 on all days during November 1 - 4, 2010. Accordingly,   Scheduled Commercial Banks may avail of additional liquidity support under the Liquidity Adjustment Facility (LAF) to the extent of up to 1.0 per cent of their Net Demand and Time Liabilities (NDTL) as on October 8, 2010. As the LAF auction on November 4, 2010 will be for four days, banks may seek waiver of penal interest for any shortfall in maintenance of Statutory Liquidity Ratio (SLR) arising out of availment of this facility up to November 7, 2010 purely as an ad hoc, temporary measure. Yours faithfully, (P R Ravi Mohan) Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/252 · issued 01 Nov 2010. The plain-English explanation above is BankPulse’s own independent summary.
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Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=6064&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.
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