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RRB SLR Reduced to 23% from August 11, 2012

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/159 · issued 01 Aug 2012 · ~1 min read
Quick answerRBI cut the SLR for Regional Rural Banks from 24% to 23% of NDTL, effective fortnight starting August 11, 2012. This frees up funds for lending and investment, following the First-Quarter Review of Monetary Policy 2012-13.

What changed

The Statutory Liquidity Ratio (SLR) for Regional Rural Banks (RRBs) has been reduced from 24% to 23% of their Net Demand and Time Liabilities (NDTL). This change takes effect from the fortnight beginning August 11, 2012, as announced in the First-Quarter Review of Monetary Policy 2012-13 on July 31, 2012.

What it means for you

RRBs now need to hold 1% less of their NDTL in approved SLR securities, releasing additional liquidity for lending or other investments. This aligns RRB SLR with the broader banking system's rate, potentially improving their profitability and credit flow to rural sectors. Banks should adjust their investment portfolios and liquidity management accordingly.

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

Regional Rural Banks (RRBs), Treasury departments of RRBs, Compliance officers at RRBs, Rural lending operations

❓ 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 SLR reduction?

The new SLR of 23% applies from the fortnight beginning August 11, 2012.

Does this change affect all RRBs uniformly?

Yes, the circular applies to all Regional Rural Banks in India, reducing their SLR requirement from 24% to 23% of NDTL.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #1243: RPCD.CO.RRB.BC.No.22/03.05.28(B)/2012-13 — "Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR)" dated August 1, 2”
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/159 RPCD.CO.RRB. BC. No.22/03.05.28(B)/2012-13    August 01, 2012 All Regional Rural Banks Dear Sir, Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR) Please refer to our circular RPCD. CO. RRB. BC. No. 43 / 03.05.28(B)/ 2010-11 dated December 27, 2010 , on the captioned subject. 2. As announced in the First-Quarter Review of the Monetary Policy 2012-13 on July 31, 2012 , it has been decided to reduce the Statutory Liquidity Ratio (SLR) for Regional Rural 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. A copy of the relative notification RPCD. CO. RRB. No.21/ 03.05.28(B) / 2012-13 dated August 01, 2012 is enclosed 4. Please acknowledge receipt. Yours faithfully, (C.D.Srinivasan) Chief General Manager Encl.: As above RPCD.CO.RRB. No. 21 / 03.05.28(B)/ 2012-13     August 1, 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 RPCD. CO. RRB. No. 42/03.05.28(B)/ 2010-11 dated December 27, 2010 , the Reserve Bank of India hereby specifies that with effect from the fortnight beginning August 11, 2012, every Regional Rural Bank shall maintain in India assets as detailed in notification RPCD. CO. RRB. No. 35/ 03.05.28(B)/ 2010-11 dated October 29, 2009, the value of which shall not at the close of business of 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. (V.K.Sharma) Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/159 · issued 01 Aug 2012. 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=7491&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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