RBI hikes HTM limit to 23% of NDTL, sets phased restoration
No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2022-23/21 · issued 08 Apr 2022 · ~1 min read
Quick answerRBI has raised the HTM limit for SLR securities from 22% to 23% of NDTL, covering bonds acquired between April 1, 2022 and March 31, 2023. This limit will be gradually reduced to 19.5% by March 31, 2024, starting June 30, 2023.
The rule, in the simplest words
Banks can hold up to 23% of SLR securities in HTM (how much loan vs the gold's value) category, but this limit will be reduced over time.
The HTM limit will be restored to 19.5% by March 31, 2024, in a phased manner.
Banks can include securities acquired between April 1, 2022 and March 31, 2023 under the enhanced HTM limit of 23%.
How it plays out — a real example
A treasury officer in Indore needs to review the bank's HTM portfolio composition and ensure SLR securities acquired up to March 31, 2023 are within the new 23% limit. They must also plan for the phased reduction starting June 30, 2023, by identifying securities to shift out of HTM or sell, to avoid forced selling and maintain compliance with RBI regulations.
What changed
The special dispensation HTM limit for SLR securities was increased from 22% to 23% of NDTL. Banks can now include securities acquired between April 1, 2022 and March 31, 2023 under this enhanced limit. The limit will be restored to 19.5% in a phased manner: 22% by June 30, 2023, 21% by September 30, 2023, 20% by December 31, 2023, and 19.5% by March 31, 2024.
What it means for you
Banks get additional headroom to hold SLR securities in HTM, reducing mark-to-market volatility on their books. However, the phased restoration from June 2023 requires careful planning to avoid forced selling. This supports bond demand in the near term but signals eventual normalization.
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 HTM portfolio composition and ensure SLR securities acquired up to March 31, 2023 are within the new 23% limit.
Plan for the phased reduction starting June 30, 2023, by identifying securities to shift out of HTM or sell.
Update internal investment policy and risk management systems to reflect the revised HTM limits and restoration schedule.
Communicate the changes to treasury and ALM teams for compliance and strategy alignment.
Who it affects
All commercial banks, Treasury departments, ALM and risk management teams, Investment portfolio managers
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 06:26 IST
Status change: withdrawn2026-07-13T04:47:15
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
What is the new HTM limit for SLR securities?
The enhanced HTM limit is now 23% of NDTL, up from 22%, for SLR securities acquired between April 1, 2022 and March 31, 2023.
📜 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/2022-23/21
DOR.MRG.REC.14/21.04.141/2022-23
April 08, 2022
Dear Sir / Madam,
Review of SLR holdings in HTM category
Please refer to paragraph 4 of Statement on Development and Regulatory Policies of the Monetary Policy Statement, 2022-23 dated April 08, 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 22 per cent of Net Demand and Time Liabilities (NDTL), for Statutory Liquidity Ratio (SLR) eligible securities acquired between September 1, 2020 and March 31, 2022, until March 31, 2023.
3. On a review, it has now been decided to further enhance the existing HTM limit of 22 per cent of NDTL to 23 per cent of NDTL and allow banks to include securities acquired between April 1, 2022 and March 31, 2023 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, 2023, i.e. the excess SLR securities acquired by banks during the period September 1, 2020 to March 31, 2023 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, 2023
21.00 per cent as on September 30, 2023
20.00 per cent as on December 31, 2023
19.50 per cent as on March 31, 2024
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/2022-23/21 · issued 08 Apr 2022. The plain-English explanation above is BankPulse’s own independent summary.
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.
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=12287&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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