Home › Circulars › RBI/2010-11/316

SLR Reduced from 25% to 24% of NDTL

Current · Source: Reserve Bank of India · RBI/2010-11/316 · issued 16 Dec 2010 · ~1 min read
Quick answerRBI cut the Statutory Liquidity Ratio (SLR) for scheduled commercial banks from 25% to 24% of NDTL, effective December 18, 2010. This frees up funds for lending and investment, easing liquidity conditions.
The rule, in the simplest words
How it plays out — a real example

A treasury officer in Indore, named Rohan, can now use 1% more of the bank's money to give loans to people who want to buy gold. This means Rohan can approve more loan applications and help more customers, which can boost the bank's profits and support the local economy.

What changed

The SLR requirement for scheduled commercial banks was reduced from 25% to 24% of net demand and time liabilities (NDTL), effective December 18, 2010. This change was announced in the Mid-Quarter Review of Monetary Policy on December 16, 2010, and supersedes the previous SLR of 25% set in October 2009.

What it means for you

Banks can now deploy an additional 1% of their NDTL into higher-yielding assets like loans or investments, potentially boosting profitability. This move signals RBI's intent to ease liquidity and support credit growth, though banks must still maintain the required SLR assets as per existing guidelines.

What you must do

Who it affects

All scheduled commercial banks (excluding Regional Rural Banks), Treasury departments managing SLR investments, 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).

When does the new SLR of 24% take effect?

The reduced SLR of 24% of NDTL is effective from December 18, 2010, as per the RBI notification.

What assets qualify for SLR maintenance?

Banks must maintain assets as specified in RBI notification DBOD No Ret BC 40/12.02.001/2009-10 dated September 08, 2009, which typically include government securities and other approved instruments.

Does this change affect Regional Rural Banks?

No, the circular explicitly excludes Regional Rural Banks from this SLR reduction.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Supersedes SLR Hiked to 25% from Nov 7, 2009
📜 Read the original circular — full text as issued by RBI
RBI/2010-11/316 DBOD.Ret.BC. 67/12.02.001/2010-11 December 16, 2010 All Scheduled Commercial Banks (excluding Regional Rural Banks) Dear Sir, Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR). Please refer to our circular DBOD. No. Ret. BC. 51/12.02.001/2009-10 dated October 28, 2009 on the captioned subject. 2.  As announced in the Mid-Quarter Review of Monetary Policy released on December 16, 2010 , it has been decided to reduce the Statutory Liquidity Ratio (SLR) for Scheduled Commercial Banks from 25 per cent of their Net Demand and Time Liabilities (NDTL) to 24 per cent with effect from December 18, 2010. 3. A copy of the relative notification DBOD. No. Ret. BC.66 /12.02.001/2010-11 dated December 16, 2010 is enclosed 4. Please acknowledge receipt. Yours faithfully, (P R Ravi Mohan) Chief General Manager Encl: As above Ref. DBOD. No. Ret. BC. 66/12.02.001/2010-11 December 16, 2010 NOTIFICATION In exercise of the powers conferred by sub-section (2A) of Section 24 of the Banking Regulation Act, 1949 (10 of 1949) as amended from time to time and, in partial modification of the Notification DBOD.No.Ret. BC. 50/12.02.001/2009-10 dated October 28, 2009 , the Reserve Bank of India hereby specifies that with effect from December 18, 2010, every Scheduled Commercial Bank shall maintain in India assets as detailed in notification DBOD No Ret BC 40/12.02.001/ 2009-10 dated September 08, 2009, the value of which shall not at the close of business of any day be less than 24 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight. (Anand Sinha) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/316 · issued 16 Dec 2010. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamRisk ManagementSenior Management / BoardInternal AuditIT & Cyber Security
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SLR Hiked to 25% from Nov 7, 2009SFB 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 Schedule
Browse all departments →
Who does what — compliance checklist
💻 IT / Systems
  • Update internal systems and reporting processes to reflect the revised SLR requirement.
📜 Compliance
  • Recalibrate your SLR asset portfolio to ensure compliance with the new 24% threshold from December 18, 2010.
  • Review liquidity management strategies to deploy freed-up funds into lending or other profitable avenues.
  • Communicate the change to treasury and compliance teams for seamless implementation.
Grouped from the action items above — a single circular may involve more than one team.
Worked example & action-note template

Example: if you are a Compliance officer at a bank this circular applies to (All scheduled commercial banks (excluding Regional Rural Banks), Treasury departments managing SLR investments, Compliance and risk management teams), your first concrete step on “SLR Reduced from 25% to 24% of NDTL” is: “Recalibrate your SLR asset portfolio to ensure compliance with the new 24% threshold from December 18, 2010.” (RBI issued this 16 Dec 2010).

  1. Circular: RBI/2010-11/316 -- SLR Reduced from 25% to 24% of NDTL
  2. Issued: 16 Dec 2010
  3. Action required: Recalibrate your SLR asset portfolio to ensure compliance with the new 24% threshold from December 18, 2010.
  4. Action required: Review liquidity management strategies to deploy freed-up funds into lending or other profitable avenues.
  5. Action required: Update internal systems and reporting processes to reflect the revised SLR requirement.
  6. Action required: Communicate the change to treasury and compliance teams for seamless implementation.
  7. Owner: ____________ Target date: ____________
  8. Board/committee approval needed? Y / N
  9. Evidence filed in compliance register on: ____________
Built only from this circular’s own published fields — not legal advice; always confirm against the official RBI source.

💬 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=6149&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 ↗
—