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RBI Extends Enhanced HTM Limit for SLR Securities to March 2024

No longer current — withdrawn, no replacement on file yet

Source: Reserve Bank of India · RBI/2022-23/150 · issued 08 Dec 2022 · ~2 min read

Quick answerRBI extends the enhanced HTM limit of 23% of NDTL for SLR securities until March 31, 2024, and allows inclusion of securities acquired up to that date. The limit will then be phased down to 19.5% by March 31, 2025.

The rule, in the simplest words

Banks can hold up to 23% of NDTL [Net Demand and Time Liabilities, or the total amount of money a bank needs to pay out immediately and in the short term] in HTM [Held to Maturity, or securities that a bank plans to keep until they mature] for SLR [Statutory Liquidity Ratio, or the amount of liquid assets that a bank must hold] securities until March 31, 2024
The limit will be phased down to 19.5% by March 31, 2025, with quarterly steps in between
Securities acquired between September 1, 2020 and March 31, 2024 can be included under this enhanced limit
Banks should plan their investment strategies to align with the gradual normalization of the HTM limit

How it plays out — a real example

A treasury officer in Mumbai can now plan to manage their bank's HTM portfolio without being forced to sell securities prematurely, thanks to the extended deadline. They will review their current HTM holdings and ensure that SLR securities acquired up to March 31, 2024 are eligible for the enhanced 23% limit. This will help the bank to avoid a sudden spike in bond yields or mark-to-market losses, and to manage its balance sheet more smoothly.

What changed

The special dispensation allowing banks to hold up to 23% of NDTL in HTM for SLR securities, originally ending March 31, 2023, is now extended to March 31, 2024. Securities acquired between September 1, 2020 and March 31, 2024 can be included under this enhanced limit. After March 31, 2024, the limit will be reduced in quarterly steps: 22% by June 30, 2024, 21% by September 30, 2024, 20% by December 31, 2024, and finally 19.5% by March 31, 2025.

What it means for you

Banks get additional time to manage their HTM portfolios without being forced to sell securities prematurely, which helps in smoother balance sheet management amid interest rate volatility. The phased reduction from June 2024 gives banks a clear runway to adjust their holdings, avoiding a sudden spike in bond yields or mark-to-market losses. Lenders should plan their investment strategies to align with the gradual normalization of the HTM limit.

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

Review your current HTM holdings and ensure SLR securities acquired up to March 31, 2024 are eligible for the enhanced 23% limit.
Prepare a phased reduction plan to bring HTM holdings down to 22% by June 30, 2024, and further to 19.5% by March 31, 2025.
Monitor NDTL growth to avoid breaching the quarterly HTM caps during the reduction period.
Update internal investment policies and reporting systems to reflect the extended timeline and phased restoration.

Who it affects

All commercial banks in India, Treasury and investment departments, Risk management and ALM teams

❓ Common questions

Regulatory timeline

Decoded by BankPulse 2026-06-18 05:15 IST
Status change: withdrawn 2026-07-13T04:47:15

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

What is the new deadline for using the enhanced HTM limit of 23%?

The enhanced HTM limit of 23% of NDTL is now available until March 31, 2024, for SLR securities acquired between September 1, 2020 and March 31, 2024.

How will the HTM limit be reduced after March 2024?

Starting June 30, 2024, the limit will be reduced in quarterly steps: 22% by June 30, 2024, 21% by September 30, 2024, 20% by December 31, 2024, and finally 19.5% by March 31, 2025.

Does this circular apply to all banks?

Yes, it applies to all commercial banks in India, as stated in the circular.

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

The guidelines have been repealed. Please refer to the Reserve Bank of India (Classification, Valuation and Operation of Investment Portfolio of Commercial Banks) Directions, 2021 .
 RBI/2022-23/150
DOR.MRG.REC.89/21.04.141/2022-23
 December 8, 2022
 Review of SLR holdings in HTM category
 Please refer to paragraph 1 of Statement on Development and Regulatory Policies of the Monetary Policy Statement, 2022-23 dated December 7, 2022 and Section 6(iv)(a) of Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2021 dated August 25, 2021 .
 2. At present, banks have been granted a special dispensation of enhanced Held to Maturity (HTM) limit of 23 per cent of Net Demand and Time Liabilities (NDTL), for Statutory Liquidity Ratio (SLR) eligible securities acquired between September 1, 2020 and March 31, 2023, until March 31, 2023.
 3. On a review, it has been decided to further extend the dispensation of enhanced HTM limit of 23 per cent of NDTL upto March 31, 2024 and allow banks to include securities acquired between September 1, 2020 and March 31, 2024 under the enhanced limit of 23 per cent.
 4. The enhanced HTM limit of 23 per cent shall be restored to 19.5 percent in a phased manner, beginning from the quarter ending June 30, 2024, i.e., the excess SLR securities acquired by banks during the period September 1, 2020 to March 31, 2024 shall be progressively reduced such that the total SLR securities held in the HTM category as a percentage of the NDTL do not exceed:
 22.00 per cent as on June 30, 2024
 21.00 per cent as on September 30, 2024
 20.00 per cent as on December 31, 2024
 19.50 per cent as on March 31, 2025
 All other instructions shall remain unchanged.
 5. The relevant sections of the Master Direction are being amended to reflect the aforementioned changes.
 Applicability
 6. This circular is applicable to all Commercial Banks.
 7. These instructions shall come into force with immediate effect.
 Yours faithfully,
 (Usha Janakiraman)
 Chief General Manager

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2022-23/150 · issued 08 Dec 2022. The plain-English explanation above is BankPulse’s own independent summary.

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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=12422&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.