**Policy Summary: Inclusion of Standing Deposit Facility (SDF) Balances as Eligible Statutory Liquidity Ratio (SLR) Asset**
This notification, issued by the Reserve Bank of India (RBI) on April 08, 2022, announces the inclusion of balances held by banks with the RBI under the Standing Deposit Facility (SDF) as an eligible Statutory Liquidity Ratio (SLR) asset, effective immediately. This decision was announced in the Statement on Developmental and Regulatory Policies on the same date.
Specifically, the notification amends previous guidelines (DBR.No.Ret.BC.1012.02.001/2018-19 dated December 05, 2018) regarding the maintenance of the SLR, as governed by Section 24 and Section 56 of the Banking Regulation Act, 1949. Banks are instructed to report SDF balances under "Cash in hand" in Form VIII or Form I, as applicable. While SDF balances will be considered part of "Cash for SLR maintenance," they will *not* be eligible for Cash Reserve Ratio (CRR) maintenance.
The legal basis for this notification is derived from subsection 2A of Section 24 read with Section 51 and Section 56 of the Banking Regulation Act, 1949. The notification number is DOR.RET.REC.1612.01.001/2022-23, dated April 08, 2022, and signed by Jayant Kumar Dash, Executive Director, Reserve Bank of India.
For further information, contact Prakash Baliarsingh, Chief General Manager, Department of Regulation, Central Office, Reserve Bank of India, 12th/13th Floor, Central Office Building, Shaheed Bhagat Singh Marg, Mumbai – 400001. Tel No: 22601000. Fax No: 022-2270 5670, 2260 5671, 2260 5691, 2260 5692.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking sector.
Banking Regulation Act, 1949: An act of the Parliament of India that regulates the Indian banking sector.
Statutory Liquidity Ratio (SLR): The minimum percentage of deposits that banks are required to hold in liquid assets.
Regional Rural Banks: Scheduled Commercial Banks including Regional Rural Banks
Small Finance Banks: Banks in India created with the purpose of increasing financial inclusion
Payments Banks: Banks in India that are allowed to accept deposits and provide payments services, but cannot lend money.
Standing Deposit Facility (SDF): A facility allowing banks to deposit funds with the RBI.
Cash Reserve Ratio (CRR): The percentage of a bank's total deposits that it must maintain with the Reserve Bank of India as cash reserves.
भारतीय �र ज़व� ब�क
RESERVE BANK OF INDIA
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
िविनयमन िवभाग, क�द्रीय काया�लय, 12वी ंऔर 13वी ंमंिज़ल, क�द्रीय काया�लय भवन, शहीद भगत िसंह माग�, मुंबई 400001
टेलीफोन /Tel No: 22601000 फै�/ Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692
Department of Regulation, Central Office, 12th & 13th Floor, Central Office Building, Shaheed Bhagat Singh Marg, Mumbai – 400001
Tel No: 22601000 Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692
ब�क िहंदी म� पत्राचार का �ागत करता है
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or
offers funds to anyone. Please do not respond in any manner to such offers.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