Home › Circulars › RBI/2013-14/622

RBI cuts SLR to 22.5% from June 14, 2014

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2013-14/622 · issued 03 Jun 2014 · ~1 min read

Quick answerRBI reduced the Statutory Liquidity Ratio (SLR) for Scheduled Commercial Banks and Local Area Banks from 23.0% to 22.5% of Net Demand and Time Liabilities (NDTL), effective from the fortnight beginning June 14, 2014. This frees up funds for lending and investment.

The rule, in the simplest words

SLR (the share of deposits banks must keep in safe assets like government bonds) is now 22.5% instead of 23%.
This applies to all scheduled commercial banks and local area banks, but not to regional rural banks.
The new rule starts from the two-week period that begins on June 14, 2014.
Banks must check their daily holdings of these safe assets to make sure they are not below the new lower limit.
The change was announced in the RBI's monetary policy statement on June 3, 2014.

How it plays out — a real example

Ravi, the treasury head at a mid-sized private bank, receives the RBI circular on June 3. He immediately updates the bank's SLR monitoring system to the new 22.5% threshold, freeing up about ₹50 crore in government securities that he can now deploy in corporate bonds, boosting the bank's interest income.

What changed

The SLR requirement was lowered by 50 basis points, from 23.0% to 22.5% of NDTL. The change applies to all Scheduled Commercial Banks and Local Area Banks, excluding Regional Rural Banks. It takes effect from the fortnight starting June 14, 2014.

What it means for you

Banks will need to hold fewer liquid assets (like government securities) against their deposits, releasing funds that can be deployed in higher-yielding loans or investments. This supports credit growth and may ease liquidity conditions. The reduction aligns with the RBI's monetary policy stance announced on June 3, 2014.

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

Update your SLR computation systems to reflect the new 22.5% threshold from the fortnight beginning June 14, 2014.
Review your statutory liquidity portfolio to ensure compliance with the revised requirement at close of business each day.
Reassess your liquidity and investment strategy to deploy the freed-up funds optimally.
Communicate the change to your treasury and compliance teams to avoid any inadvertent breaches.

Who it affects

All Scheduled Commercial Banks, Local Area Banks, Treasury and compliance departments, Credit and investment planning teams

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-08-03 04:07 IST
repealed_by — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)
Status change: withdrawn 03 Aug 2026, 04:00 IST

Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).

What is the new SLR percentage?

The SLR is reduced to 22.5% of Net Demand and Time Liabilities (NDTL), effective from the fortnight beginning June 14, 2014.

Which banks are covered?

All Scheduled Commercial Banks and Local Area Banks, excluding Regional Rural Banks.

When does this change take effect?

From the fortnight beginning June 14, 2014, as per the RBI notification dated June 3, 2014.

📜 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 #920: DBOD.No.Ret.BC.118/12.02.001/2013-14 — "Notification on Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR)" dated ”

📜 Read the original circular — full text as issued by RBI

Notifications - Reserve Bank of India Skip to main content Selected Selected Change Language हिंदी Search the Website Search Home About Us ▼ About Us Organisation & Functions ▶ Organisation Structure Departments Offices Training Establishment ▶ College of Agricultural Banking Reserve Bank Staff College College of Supervisors RBI's Functions and Working Governors Deputy Governors Executive Directors Communication Policy of RBI Sources of Information ▶ Annual Publications Half-yearly Publications Quarterly Publications Monthly Publications Weekly Publications Occasional Publications SDDS NSDP Data Releases Publications available on Subscription General Information RBI History Museum ▶ The RBI Museum RBI Monetary Museum Notification ▼ Notifications Master Directions Master Circulars Amendment Directions Draft Notifications/Guidelines ▶ Draft Notifications/Guidelines Draft Directions (RE-wise) Index To RBI Circulars Standalone Circulars Circulars Withdrawn Press Releases Speeches & Media Interactions ▼ Speeches Media Interactions Memorial Lectures Podcasts Publications ▼ Biennial Annual Half-Yearly Quarterly Bi-monthly Monthly Weekly Occasional Reports Working Papers Legal Framework ▼ Act Rules Regulations Schemes Research ▼ External Research Schemes RBI Occasional Papers Working Papers RBI Bulletin History DRG Studies KLEMS State Statistics and Finances Statistics ▼ Data Releases Database on Indian Economy Public Debt Statistics Regulatory Reporting ▼ List of Returns Data Definition Validation rules/ Taxonomy List of RBI Reporting Portals FAQs of RBI Reporting Portals Home Notifications Notifications ( 493 kb ) Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR) RBI/2013-14/622 DBOD.Ret.BC.117/12.02.001/2013-14 June 03, 2014 All Scheduled Commercial Banks and Local Area 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 circulars DBOD.Ret.BC.33/12.02.001/2012-13 dated July 31, 2012 and DBOD.Ret.BC.48/12.02.001/2012-13 dated September 28, 2012 on the captioned subject. 2. As announced in the Second Bi-Monthly Monetary Policy Statement 2014-15 by Reserve Bank of India on June 03, 2014, it has been decided to reduce the Statutory Liquidity Ratio (SLR) of Scheduled Commercial Banks and Local Area Banks from 23.0 per cent of the Net Demand and Time Liabilities (NDTL) to 22.5 per cent with effect from the fortnight beginning June 14, 2014. 3. A copy of the relative notification DBOD.No.Ret.BC.118/12.02.001/2013-14 dated June 03, 2014 is enclosed . 4. Please acknowledge receipt. Yours faithfully, (Sudha Damodar) Chief General Manager Encl: As above Ref. DBOD. No. Ret. BC.118/12.02.001/2013-14 June 03, 2014 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. 32/12.02.001/2012-13 dated July 31, 2012 and DBOD.No. Ret. BC.47/12.02.001/2012-13 dated September 28, 2012 , the Reserve Bank hereby specifies that with effect from the fortnight beginning June 14, 2014, every Scheduled Commercial Bank and Local Area 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 22.5 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 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. All Rights Reserved. Sitemap | Disclaimer Website owned and managed by Reserve Bank of India. Contact us on helpdoc[at]rbi[dot]org[dot]in Website last updated date: Aug 01, 2026 Supports: Google Chrome 147+ | Firefox 150+ | Microsoft Edge Version 147+ | Safari 17+ Accessibility Statement | Screen Reader and Accessibility Help

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/622 · issued 03 Jun 2014. The plain-English explanation above is BankPulse’s own independent summary.

🧰 Tools — save, print, templates & related

Most relevant forTreasury Team / ALM Compliance Team Senior Management / Board Risk Management Internal Audit IT & Cyber Security

🛠 Banker’s toolkit — checklists & reply templates →

Related circulars · Department of Regulation

SFB Pillar 3 Disclosure Norms Aligned with Basel UCB Deposit Rate Disclosure & Uniformity Rules Updated LAB Deposit Rate Disclosure & Uniformity Rules Tightened Payments Banks: Interest Rates Must Match Disclosed Schedule RBI Updates Bulk Deposit Rate Rules and Disclosure Timing

Browse all departments →

💬 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=8916&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.