RBI Doubles SLR Liquidity Support to 2% of NDTL Till Jan 28, 2011
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/290 · issued 30 Nov 2010 · ~1 min read
Quick answerRBI has increased additional LAF liquidity support from 1% to 2% of NDTL for scheduled commercial banks, effective immediately until January 28, 2011. Any SLR shortfall from this facility can get penal interest waiver on a fortnightly basis as a temporary measure.
What changed
Earlier, banks could avail additional LAF support up to 1% of NDTL till December 16, 2010. Now, the limit is doubled to 2% of NDTL, and the window is extended to January 28, 2011. The waiver of penal interest for SLR shortfalls is now available on a fortnightly basis instead of a one-time waiver.
What it means for you
This gives banks more room to manage liquidity pressures without incurring penalties for SLR non-compliance. The higher limit and extended timeline indicate RBI's intent to ease systemic stress. Banks must report daily usage of this facility, adding to operational tracking.
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
Update your LAF borrowing limits to reflect the new 2% of NDTL cap.
Ensure daily reporting of liquidity support availed under this facility.
Apply for penal interest waiver on a fortnightly basis for any SLR shortfall arising from this support.
Monitor NDTL figures as of the reporting Friday of the second preceding fortnight for accurate limit calculation.
Who it affects
All scheduled commercial banks, Treasury and ALM teams, Compliance and reporting departments
RBI’s words: “the additional liquidity support under LAF announced by the Reserve Bank of India on November 29, 2010 will now be available up to the extent of 1.0 per cent (instead of 2.0 per cent)”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1584: DBOD.No.Ret.BC.63/12.02.001/2010-11 — "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/2010-11/290
Ref. DBOD.No.Ret.BC. 63 /12.02.001/2010-11
November 30, 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. 60/12.02.001/2010-11 dated November 09, 2010 wherein it was advised that 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 the reporting Friday of the second preceding fortnight till December 16, 2010. 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.
2. As stated in the Press Release issued by the Reserve Bank of India on November 29, 2010, in order to provide further liquidity comfort, it has been decided to allow Scheduled Commercial Banks to avail of the additional liquidity support under the LAF to the extent of up to 2.0 per cent of their NDTL as on the reporting Friday of the second preceding fortnight with immediate effect up to January 28, 2011. For any shortfall in SLR maintenance arising out of availment of this facility, banks may seek waiver of penal interest on a fortnightly basis purely as an ad hoc, temporary measure. The liquidity support availed under this facility would, however, need to be reported on a daily basis.
Yours faithfully,
(B. Mahapatra)
Chief General Manager -in-Charge
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/290 · issued 30 Nov 2010. The plain-English explanation above is BankPulse’s own independent summary.
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.
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=6120&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.
Help us keep this accurate
Found an inaccuracy or have an improvement? Tell us. Every report is reviewed by our team before any change is made — nothing goes live unverified.
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 ↗
BANKPULSE · FREE DAILY BRIEF
Get RBI updates for your role
Every important RBI update, decoded in plain English — for your career, exams & financial awareness.
We collect only your email, name and role, used solely to send your brief — never sold or shared. Withdraw anytime via the unsubscribe link in any email. Independent platform, not affiliated with the RBI. Information, not legal advice.
REPORT AN ERROR · BETA
Spotted an error? Earn 500 BankPulse Credits
Help us stay accurate. If your correction is verified true and approved by our founder, you earn 500 BankPulse Credits — redeemable when the platform monetises.
Reviewed by a human before any credit is awarded. We never change the site from crowd input without verification.
WANT A NEW FEATURE · BETA
What would make BankPulse more useful for you?
Tell us what to build next — a tool, a data view, a role page, anything. We read every suggestion.
Thank you — your ideas directly shape what we build.