**Summary:**
This circular, DOR.No.Ret.BC.52/12.01.001/2019-20, issued by the Reserve Bank of India (RBI) on March 27, 2020, addresses all Scheduled Banks (excluding Regional Rural Banks) regarding the Marginal Standing Facility (MSF) scheme under Section 24 of the Banking Regulation Act, 1949, concerning the maintenance of the Statutory Liquidity Ratio (SLR).
The circular announces an increase in the borrowing limit for Scheduled Banks (excluding Regional Rural Banks) under the MSF scheme from 2 percent to 3 percent of their Net Demand and Time Liabilities (NDTL) outstanding at the end of the second preceding fortnight. This enhanced limit is effective immediately and will remain applicable until June 30, 2020.
The decision to raise the borrowing limit was announced in the Statement of Developmental and Regulatory Policies on March 27, 2020. This circular references previous circulars DBOD.No.Ret.BC.95/12.02.001/2011-12 dated April 17, 2012, UBD.BPD.SCB.Cir.No.116/27.00.000/2014-15 dated October 29, 2014 and DCBR.BPD.PCBRCB.Cir.No.3/16.27.000/2018-19 dated August 16, 2018 related to the MSF scheme.
The circular requests acknowledgement of receipt and is issued by Dr. S. K. Kar, Chief General Manager, Department of Regulation, Central Office, Reserve Bank of India, 5th floor, Amar Building, Sir P.M. Road, Fort, Mumbai – 400001. Contact information includes telephone number 22661602/2260100 and fax number 022-22705691. The RBI website is www.rbi.org.in.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for regulating the banking system.
Banking Regulation Act, 1949: An act of the Parliament of India to regulate banking companies.
Statutory Liquidity Ratio (SLR): The minimum percentage of deposits that commercial banks have to maintain in the form of liquid assets.
Marginal Standing Facility (MSF): A facility under which scheduled commercial banks can borrow additional amount of overnight money from the Reserve Bank of India.
Scheduled Banks: Banks listed in the Second Schedule of the Reserve Bank of India Act, 1934.
Regional Rural Banks: Regional Rural Banks (RRBs) are financial institutions in India which operate at a regional level.
Net Demand and Time Liabilities (NDTL): The difference between the sum of demand and time liabilities (deposits) of a bank with the public and other banks, and its assets with other banks.
Mumbai, Maharashtra: A city in India where the Central Office of the Reserve Bank of India, Department of Regulation is located.
भारतीय �रज़व र् बक�
______________________RESERVE BANK OF INDIA ______________________
www.rbi.org.in
RBI/2019-20/189
DOR.No.Ret.BC.52/12.01.001/2019-20 March 27, 2020
All Scheduled Banks (excluding Regional Rural Banks)
Dear Sir / Madam
Section 24 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity
Ratio (SLR) – Marginal Standing Facility (MSF)
Please refer to our Circular DBOD.No.Ret.BC.95/12.02.001/2011-12 dated April 17, 2012,
Circular UBD.BPD.(SCB).Cir.No.1/16.27.000/2014-15 dated October 29, 2014 and
DCBR.BPD.(PCB/RCB).Cir.No.3/16.27.000/2018-19 dated August 16, 2018 on Marginal
Standing Facility (MSF) Scheme.
2. As announced in the Statement of Developmental and Regulatory Policies, March 27,
2020, it has been decided to raise the borrowing limit of Scheduled Banks (excluding
Regional Rural Bank) under the MSF scheme from 2 per cent to 3 per cent of their Net
Demand and Time Liabilities (NDTL) outstanding at the end of the second preceding
fortnight with immediate effect. The enhanced limit will be applicable up to June 30, 2020.
3. Please acknowledge receipt.
Yours faithfully
(Dr. S K Kar)
Chief General Manager
___________________________________________________________________________________________________________________
िविनयमन िवभाग, क�द्रीय काया�लय, 5वी ं मंिजल, अमर भवन, सर पी एम रोड, फोट�, मुंबई 400001
टेलीफ़ोन /Tel No: 22661602/2260100 फै� / Fax No.: 022-22705691
Department of Regulation, Central Office, 5th floor, Amar Building, Sir P.M. Road, Fort, Mumbai – 400001.
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