Source: Reserve Bank of India · RBI/2010-11/267 · issued 09 Nov 2010 · ~2 min read
Quick answerRBI allows banks to avail additional LAF support up to 1% of NDTL from Nov 9 to Dec 16, 2010, with waiver of penal interest for any SLR shortfall arising from this facility, as a temporary measure to ease frictional liquidity pressure.
What changed
RBI permitted scheduled commercial banks to access additional liquidity support under LAF up to 1% of their NDTL (based on the reporting Friday of the second preceding fortnight). For any SLR shortfall caused by using this facility between November 9 and December 16, 2010, banks can seek waiver of penal interest as an ad hoc, temporary measure.
What it means for you
This circular provides temporary liquidity relief to banks facing frictional pressure, allowing them to dip into SLR holdings without penalty. Banks can now manage short-term liquidity mismatches more flexibly, but the window is limited to just over a month. Lenders should plan their liquidity buffers accordingly, as the waiver is purely ad hoc and not a permanent relaxation.
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
Calculate your additional LAF eligibility as 1% of NDTL as per the specified reporting Friday.
If you avail this facility, document the SLR shortfall separately and prepare to request penal interest waiver from RBI.
Monitor liquidity closely and ensure compliance with SLR norms after December 16, 2010, when the measure expires.
Communicate the temporary nature of this relief to your treasury and risk management teams.
Who it affects
All scheduled commercial banks, Treasury departments managing LAF and SLR compliance, Risk management teams handling liquidity buffers
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn03 Aug 2026, 04:00 IST
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 I can avail under this circular?
You can avail up to 1.0% of your Net Demand and Time Liabilities (NDTL) as on the reporting Friday of the second preceding fortnight.
Will I be penalized for SLR shortfall if I use this facility?
No, RBI has allowed waiver of penal interest for any SLR shortfall arising from availing this additional LAF support, but only as an ad hoc, temporary measure valid until December 16, 2010.
How long is this temporary measure in effect?
The facility is available from November 9, 2010, to December 16, 2010. After that date, normal SLR maintenance rules apply.
📜 This document’s life story (2 recorded events, each backed by RBI’s own words)
RBI’s words: “Please refer to our circular DBOD. No. Ret. BC. 60/12.02.001/2010-11 dated November 09, 2010”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1593: DBOD.No.Ret.BC.60/12.02.001/2010-11 — "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/2010-11/267
Ref.DBOD.No.Ret.BC.60 /12.02.001/2010-11
November 09, 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. 55/12.02.001/2010-11dated November 01, 2010 on the captioned subject.
2. As stated in the Reserve Bank’s press release issued on November 09, 2010, in line with the stance of monetary policy set out in the Second Quarter Review of November 2, 2010 and in order to provide liquidity comfort arising out of frictional liquidity pressure, it has been decided that 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 the reporting Friday of the second preceding fortnight. For any shortfall in maintenance of Statutory Liquidity Ratio (SLR) during November 9 – December 16, 2010 arising out of availment of this facility, banks may seek waiver of penal interest purely as an ad hoc, temporary measure. The above measure will be in force till December 16, 2010.
Yours faithfully,
(P R Ravi Mohan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/267 · issued 09 Nov 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=6088&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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