HomeCirculars › RBI/2013-14/626

RBI cuts SLR for RRBs to 22.50% from June 14, 2014

No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2013-14/626 · issued 04 Jun 2014 · ~1 min read
Quick answerRBI reduced the Statutory Liquidity Ratio (SLR) for Regional Rural Banks from 23% to 22.50% of NDTL, effective the fortnight starting June 14, 2014, following the June 3, 2014 monetary policy announcement.

What changed

The SLR requirement for RRBs was lowered by 50 basis points, from 23% to 22.50% of Net Demand and Time Liabilities. This change takes effect from the fortnight beginning June 14, 2014, superseding the earlier circular dated August 1, 2012.

What it means for you

RRBs will now need to hold fewer funds in approved SLR securities, freeing up liquidity for lending or other investments. This aligns with RBI's accommodative stance to support credit flow and economic activity. Banks should adjust their asset-liability management to optimize the released funds.

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 Regional Rural Banks (RRBs), Treasury and ALM teams of RRBs, Compliance departments of RRBs

❓ 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 new SLR percentage for RRBs?

The SLR for RRBs has been reduced from 23% to 22.50% of Net Demand and Time Liabilities (NDTL), effective from the fortnight beginning June 14, 2014.

Why did RBI reduce the SLR for RRBs?

The reduction was announced in the Second Bi-monthly Monetary Policy statement for 2014-15 on June 3, 2014, as part of RBI's policy to ease liquidity and support economic growth.

Which circular is being modified by this notification?

This notification partially modifies the earlier circular RPCD.CO.RRB.BC.No.22/03.05.28(B)/2012-13 dated August 1, 2012, which had set the SLR at 23%.

📜 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Repealed by RBI/2025-26/100 — Consolidation of Regulations — Withdrawal of circulars (28 Nov 2025)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 #918: RPCD.CO.RRB.BC.No.106/03.05.33/2013-14 — "Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR)" dated June 4, 2014”
📜 Read the original circular — full text as issued by RBI
RBI/2013-14/626 RPCD.CO.RRB.BC.No.106/03.05.33/2013-14 June 4, 2014 The Chairmen All Regional Rural Banks Dear Sir/Madam, Section 24 of the Banking Regulation Act, 1949 - Maintenance of Statutory Liquidity Ratio (SLR) Please refer to our circular RPCD.CO.RRB.BC.No.22/03.05.28(B)/2012-13 dated August 1,  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 3, 2014, it has been decided to reduce the Statutory Liquidity Ratio (SLR) of Regional Rural Banks from 23 per cent of the Net Demand and Time Liabilities (NDTL) to 22.50 per cent with effect from the fortnight beginning June 14, 2014. 3. A copy of the relative notification RPCD.CO.RRB.No.107/03.05.33/2013-14 dated June 4, 2014 is enclosed . 4. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, (A.Udgata) Principal Chief General Manager RPCD.CO.RRB.No. 107/03.05.33/2013-14 June 4, 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 RPCD.CO.RRB.No.21/03.05.28(B)/2012-13 dated August 1, 2012 , the Reserve Bank of India hereby specifies that with effect from the fortnight beginning June 14, 2014, every Regional Rural Bank shall maintain in India assets as detailed in notification RPCD.CO.RRB.No.35/03.05.28(B)/2009-10 dated October 29, 2009 , the value of which shall not at the close of business of any day be less than 22.50 per cent of the total net demand and time liabilities in India as on the last Friday of the second preceding fortnight. Dr.(Smt.) Deepali Pant Joshi Executive Director
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2013-14/626 · issued 04 Jun 2014. 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=8920&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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