RBI Notifies for Review of SLR Holdings in HTM Category

On 8th December 2022, the Reserve Bank of India (RBI) issued a Notification in regard to the Review of Statutory Liquidity Ratio (SLR) Holdings in Held to Maturity (HTM) Category. This particular Notification was issued in reference to paragraph 1 of the “Statement on Development and Regulatory Policies of the Monetary Policy Statement, 2022-23” issued on 7th December 2022 and Section 6 (iv) (a) of “Master Direction – Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2021” issued on 25th August 2021.

Currently, banks have been granted with a special dispensation in regard to the enhanced Held to Maturity (HTM) Limit of 23% of the Net Demand and Time Liabilities (NDTL) for the Statutory Liquidity Ratio (SLR) eligible securities that were acquired between 1st September 2020 and 31st March 2023.