No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/387 · issued 25 Jan 2011 · ~1 min read
Quick answerRBI extends additional LAF liquidity support of 1% of NDTL from January 28 to April 8, 2011. Banks can seek waiver of penal interest for SLR shortfalls arising from this facility, on a fortnightly basis, as an ad hoc measure.
What changed
The earlier circular (December 16, 2010) allowed additional LAF support up to 1% of NDTL until January 28, 2011. This circular extends that deadline to April 8, 2011, following the Third Quarter Review of Monetary Policy 2010-11. The waiver of penal interest for SLR shortfalls remains available as an ad hoc, temporary measure.
What it means for you
Banks can continue to access extra liquidity from RBI under LAF without immediately worrying about SLR compliance penalties. This gives lenders more breathing room to manage short-term liquidity pressures without breaching regulatory norms. However, the facility is temporary and requires daily reporting of availed liquidity support.
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
Ensure daily reporting of liquidity support availed under this facility to RBI.
Apply for waiver of penal interest on a fortnightly basis for any SLR shortfall arising from this support.
Monitor SLR positions closely to avoid exceeding the 1% NDTL limit for additional LAF support.
Prepare for the expiry of this facility on April 8, 2011, and plan liquidity accordingly.
Who it affects
All Scheduled Commercial Banks, Treasury and ALM teams, Compliance departments handling SLR reporting
RBI’s words: “the additional liquidity support ... has now been extended up to May 06, 2011”
Repealed byRBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
RBI’s words: “Official withdrawal register entry #1553: DBOD.No.Ret.BC.76/12.02.001/2010-11 — "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/2010-11/387
Ref. DBOD.No.Ret.BC. 76 /12.02.001/2010-11
January 25, 2011
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.68/12.02.001/2010-11 dated December 16, 2010 wherein it was advised that Scheduled Commercial Banks may avail of the 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) from December 18, 2010 to January 28, 2011. For any shortfall in SLR maintenance up to January 28, 2011 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.
2. As set out in the Third Quarter Review of Monetary Policy 2010-11 announced on January 25, 2011, the additional liquidity support to Scheduled Commercial Banks under the LAF to the extent of one per cent of their NDTL, currently set to expire on January 28, 2011, is now extended up to April 8, 2011. For any shortfall in maintenance of the SLR arising out of availment of this facility, banks may seek waiver of penal interest 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,
(P R Ravi Mohan)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2010-11/387 · issued 25 Jan 2011. 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=6237&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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