Home › Circulars › RBI/2010-11/467

SLR Shortfall Waiver Extended Under LAF

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2010-11/467 · issued 08 Apr 2011 · ~1 min read
Quick answerRBI extends additional LAF liquidity support up to 1% of NDTL for SCBs until May 6, 2011, with waiver of penal interest for SLR shortfalls as an ad hoc measure. Daily reporting of availed support is required.

What changed

The additional liquidity support under LAF, previously set to expire on April 8, 2011, has been extended to May 6, 2011. Banks can continue to avail up to 1% of NDTL as extra liquidity, with SLR shortfalls eligible for penal interest waiver on a temporary basis.

What it means for you

This extension gives banks more time to manage liquidity pressures without incurring penalties for SLR non-compliance. It signals RBI's continued accommodative stance to ease funding constraints, but the temporary nature requires banks to plan for normalization. Daily reporting obligations ensure close monitoring of usage.

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

❓ 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 liquidity support available under this extension?

Banks can avail up to 1% of their Net Demand and Time Liabilities (NDTL) as additional liquidity support under LAF.

Will banks face penal interest for SLR shortfalls due to this facility?

No, banks may seek waiver of penal interest for SLR shortfalls arising from this facility, as an ad hoc and temporary measure.

Until when is this extended facility valid?

The facility is extended until May 6, 2011, from the earlier expiry date of April 8, 2011.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1537: DBOD.No.Ret.BC.84/12.02.001/2010-11 — "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/2010-11/467 Ref. DBOD.No.Ret.BC. 84 /12.02.001/2010-11 April 08, 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.76/12.02.001/2010-11 dated January 25, 2011 wherein it was advised that Scheduled Commercial Banks (SCBs) may avail of additional liquidity support under the Liquidity Adjustment Facility (LAF) to the extent of up to one per cent of their Net Demand and Time Liabilities (NDTL) up to April 08, 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. 2. As set out in the Press Release issued by the Reserve Bank of India on April 08, 2011, the additional liquidity support to SCBs under LAF to the extent of up to one per cent of their NDTL, which was set to expire on April 08, 2011, has now been extended up to May 06, 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/2010-11/467 · issued 08 Apr 2011. 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=6331&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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