Section 24 and Section 56 of the Banking Regulations Act

RBI/2022-23/23
DOR.RET.REC.15/12.01.001/2022-23

April 08, 2022

All Scheduled Commercial Banks (including Regional Rural Banks)
Local Area Banks, Small Finance Banks, Payments Banks
Primary (Urban) Co-operative Banks (UCBs)
State and Central Co-operative Banks (StCBs / CCBs)

Madam/Sir,

Section 24 and Section 56 of the Banking Regulation Act, 1949 –
Maintenance of Statutory Liquidity Ratio (SLR)

Please refer to circular DBR.No.Ret.BC.10/12.02.001/2018-19 dated December 05, 2018 and relative notification on the captioned subject.

2. As announced in the Statement on Developmental and Regulatory Policies on April 08, 2022, it has been decided to institute the Standing Deposit Facility (SDF) with immediate effect. Accordingly, it is decided that the balances held by banks with the RBI under the SDF shall be an eligible Statutory Liquidity Ratio (SLR) asset and such balances shall form part of “Cash” for SLR maintenance. Banks shall report the SDF balances under “Cash in hand” in Form VIII or Form I, as applicable.

3. The balances held by banks with RBI under the SDF shall not be eligible for Cash Reserve Ratio (CRR) maintenance.

4. A copy of the relative notification DOR.RET.REC.16/12.01.001/2022-23 dated April 08, 2022, is enclosed.

Yours faithfully,

(Prakash Baliarsingh)
Chief General Manager

DOR.RET.REC.16/12.01.001/2022-23

April 08, 2022

NOTIFICATION

In exercise of the powers conferred by sub-section (2A) of Section 24 read with Section 51 and Section 56 of the Banking Regulation Act, 1949 (10 of 1949) and in partial modification to notification DBR.Ret.BC No.11/12.02.001/2018-19 dated December 05, 2018, the Reserve Bank hereby specifies that for the purpose of this notification,

“Cash” to be maintained by banks, as referred to in the Annex of the notification ibid, shall also include the balances held by banks with RBI under Standing Deposit Facility (SDF).

(Jayant Kumar Dash)
Executive Director