SLR holdings limit in HTM category changed effective September 1:RBI

The Statutory Liquidity Ratio (SLR) is the liquid reserve to be maintained by the commercial banks at the rate fixed by RBI. At present, banks are permitted to exceed the limit of 25 per cent of the total investments under Held to Maturity (HTM) category, provided the excess comprises only of SLR securities and total SLR securities held under the hold to maturity HTM category is not more than 19.5 percent of NDTL as on the last Friday of the second preceding fortnight. RBI today announced that banks are permitted to acquire and hold SLR securities issued on or after September 1, 2020, in the HTM category, subject to an overall limit of 22 per cent of NDTL, up to March 31, 2021, which shall be reviewed thereafter.

The securities such as (i)  Dated securities of the Government of India issued from time to time under the Market Borrowing Programme and the Market Stabilization Scheme ; or (ii) Treasury Bills of the Government of India; or (iii)  State Development Loans (SDLs) of the State Governments issued from time to time under the market borrowing programme that have been acquired from the Reserve Bank under reverse repo,  are known as SLR securities for the purpose of maintenance of SLR assets.The ratio of these liquid assets held by a bank to its demand and time liabilities is called as the Statutory Liquidity Ratio is called Statutory Liquidity Ratio.