**Policy Summary: Review of SLR Holdings in HTM Category**
This circular, issued by the Reserve Bank of India (RBI) on April 08, 2022, addresses the review of Statutory Liquidity Ratio (SLR) holdings in the Held to Maturity (HTM) category for all Commercial Banks. It refers to paragraph 4 of the Monetary Policy Statement 2022-23 and Section 6(i)(a) of the Master Direction Classification, Valuation and Operation of Investment Portfolio of Commercial Banks Directions, 2021.
The circular enhances the existing HTM limit from 22% to 23% of Net Demand and Time Liabilities (NDTL), allowing banks to include SLR eligible securities acquired between April 1, 2022, and March 31, 2023, under this increased limit. This enhancement is in addition to the existing dispensation of 22% for securities acquired between September 1, 2020, and March 31, 2022, which was valid until March 31, 2023.
The enhanced HTM limit of 23% of NDTL will be restored to 19.5% in a phased manner, commencing from the quarter ending June 30, 2023. The reduction schedule is as follows:
* 22.00% as of June 30, 2023
* 21.00% as of September 30, 2023
* 20.00% as of December 31, 2023
* 19.50% as of March 31, 2024
The circular clarifies that all other instructions remain unchanged and that relevant sections of the Master Direction are being amended to reflect these revisions. The instructions outlined in this circular take immediate effect and are applicable to all Commercial Banks.
For further information, contact the Department of Regulation, Central Office, Reserve Bank of India, 12th/13th Floor, Central Office Bhavan, Shahid Bhagat Singh Marg, Mumbai – 400001. Tel No: 22661602, 22601000 Fax No: 022-2270 5670, 2260 5671, 5691, 5692.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector.
Classification, Valuation and Operation of Investment Portfolio of Commercial Banks Directions, 2021: A set of directions issued by the Reserve Bank of India governing the classification, valuation, and operation of investment portfolios of commercial banks.
Monetary Policy Statement, 202223: A statement on Development and Regulatory Policies of the Monetary Policy Statement.
Statutory Liquidity Ratio (SLR): The minimum percentage of deposits that commercial banks must maintain in liquid assets.
Held to Maturity (HTM): A category of investments that banks intend to hold until maturity.
Net Demand and Time Liabilities (NDTL): The total of demand and time liabilities of a bank, used as a base for calculating various ratios.
Mumbai, Maharashtra: The city in India where the Central Office of the Department of Regulation, Reserve Bank of India is located.
Usha Janakiraman: Chief General Manager at Reserve Bank of India.
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 Septemnber 1, 2020 and March 31, 2022, until
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March 31, 2023.
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3. On a review, it has now been decided to fudrther enhance the existing HTM limit of 22 per
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cent of NDTL to 23 per cent of NDTL and allow banks to include securities acquired between
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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:
a) 22.00 per cent as on June 30, 2023
b) 21.00 per cent as on September 30, 2023
c) 20.00 per cent as on December 31, 2023
d) 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.
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�व�नयमन �वभाग, क�द्र�य कायार्लय, 12वी ं और 13वी ं मंिज़ल, क�द्र�य कायार्लय भवन, शह�द भगत �सहं माग,र् मंबु ई 400001
टेल�फोन /Tel No: 22661602, 22601000 फैक्स/Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692
Department of Regulation, Central Office, 12th & 13th Floor, Central Office Bhavan, Shahid Bhagat Singh Marg, Mumbai - 400001
Tel No: 22661602, 22601000 Fax No: 022-2270 5670, 2260 5671, 5691, 5692Applicability
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
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