Home › Circulars › RBI/2012-13/150

SLR Reduced from 24% to 23% of NDTL Effective August 11, 2012

Current · Source: Reserve Bank of India · RBI/2012-13/150 · issued 31 Jul 2012 · ~2 min read
Quick answerRBI cut the Statutory Liquidity Ratio (SLR) for scheduled commercial banks by 1 percentage point to 23% of NDTL, effective fortnight beginning August 11, 2012, freeing up bank funds for lending and investment.
The rule, in the simplest words
How it plays out — a real example

A treasury officer in Indore, Priya, sees the new SLR rule and realizes her bank now has 1% more of its deposits free to lend. She uses this extra liquidity to approve more gold loans for local farmers, helping them buy seeds for the next planting season, while still keeping the required 23% in safe assets every day.

What changed

The SLR requirement for scheduled commercial banks was reduced from 24% to 23% of net demand and time liabilities (NDTL), effective from the fortnight starting August 11, 2012. This change was announced in the First Quarter Review of the Monetary Policy 2012-13 on July 31, 2012, and supersedes the earlier SLR notification of December 16, 2010.

What it means for you

Banks will now need to hold 1% less of their NDTL in approved securities (SLR assets), releasing additional liquidity into the system. This additional liquidity can be deployed for credit expansion or investments, potentially lowering lending rates and supporting economic growth. However, banks must ensure compliance with the new 23% floor on a daily basis from the effective date.

What you must do

Who it affects

All scheduled commercial banks (excluding Regional Rural Banks), Treasury and asset-liability management (ALM) desks, Compliance and risk management departments

❓ 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 effective date for the new SLR of 23%?

The reduced SLR of 23% applies from the fortnight beginning August 11, 2012, as per the RBI notification dated July 31, 2012.

Does this SLR reduction apply to Regional Rural Banks?

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

What is the legal basis for this SLR change?

The change is made under sub-section (2A) of Section 24 of the Banking Regulation Act, 1949, and modifies the earlier SLR notification of December 16, 2010.

📜 This document’s life story (1 recorded event, each backed by RBI’s own words)
Partially modified by SLR Reduced to 22.5% from June 14, 2014
RBI’s words: “in partial modification of the Notification DBOD.No.Ret. BC. 32/12.02.001/2012-13 dated July 31, 2012”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/150 DBOD.Ret.BC. 33 /12.02.001/2012-13 July 31, 2012 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. 67/12.02.001/2010-11 dated December 16, 2010 on the captioned subject. 2. As announced in the First Quarter Review of the Monetary Policy 2012-13 by Reserve Bank of India on July 31, 2012 , it has been decided to reduce the Statutory Liquidity Ratio (SLR) for Scheduled Commercial Banks from 24 per cent of their Net Demand and Time Liabilities (NDTL) to 23 per cent with effect from the fortnight beginning August 11, 2012. 3. Acopyof the relative notification DBOD. No. Ret. BC.32 /12.02.001/2012-13 dated July 31, 2012 is enclosed 4. Please acknowledge receipt. Yours faithfully, (Murli Radhakrishnan) Chief General Manager Encl: As above Ref. DBOD. No. Ret. BC. 32 /12.02.001/2012-13 July 31, 2012 NOTIFICATION In exercise of the powers conferred by sub-section (2A) of Section 24 of the Banking Regulation Act, 1949 (10 of 1949) and, in partial modification of the Notification DBOD.No.Ret. BC. 66/12.02.001/2010-11 dated December 16, 2010 , the Reserve Bank hereby specifies that with effect from the fortnight beginning August 11, 2012, every Scheduled Commercial Bank shall maintain in India assets as detailed in notification DBOD No Ret BC 91/12.02.001/ 2010-11 dated May 09, 2011 and DBOD No. Ret BC. 94/12.02.001/2011-12 dated April 17, 2012 , the value of which shall not at the close of business on any day be less than 23 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight. (B. Mahapatra) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/150 · issued 31 Jul 2012. The plain-English explanation above is BankPulse’s own independent summary.
🧰 Tools — save, print, templates & related
Most relevant forTreasury Team / ALMCompliance TeamRisk ManagementSenior Management / BoardBusiness Head / Vertical HeadInternal Audit
🛠 Banker’s toolkit — checklists & reply templates →
Related circulars · Department of Regulation
SLR Reduced to 22.5% from June 14, 2014SFB 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 templates to reflect the revised SLR threshold.
📜 Compliance
  • Recalibrate your SLR portfolio to ensure daily holdings are at least 23% of NDTL from August 11, 2012.
  • Assess the freed-up liquidity for deployment in priority sector lending or other assets.
  • Communicate the change to treasury and compliance teams for smooth transition.
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 and asset-liability management (ALM) desks, Compliance and risk management departments), your first concrete step on “SLR Reduced from 24% to 23% of NDTL Effective August 11, 2012” is: “Recalibrate your SLR portfolio to ensure daily holdings are at least 23% of NDTL from August 11, 2012.” (RBI issued this 31 Jul 2012).

  1. Circular: RBI/2012-13/150 -- SLR Reduced from 24% to 23% of NDTL Effective August 11, 2012
  2. Issued: 31 Jul 2012
  3. Action required: Recalibrate your SLR portfolio to ensure daily holdings are at least 23% of NDTL from August 11, 2012.
  4. Action required: Update internal systems and reporting templates to reflect the revised SLR threshold.
  5. Action required: Assess the freed-up liquidity for deployment in priority sector lending or other assets.
  6. Action required: Communicate the change to treasury and compliance teams for smooth transition.
  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=7482&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 ↗
—