The Reserve Bank of India (RBI) has issued a notification regarding the Maintenance of Statutory Liquidity Ratio (SLR) specifying Section 24 and Section 56 of the Banking Regulation Act, 1949.
RBI has decided to institute the Standing Deposit Facility (SDF) with immediate effect and 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. The notification mandated that the Banks shall report the SDF balances under “Cash in hand” in Form VIII or Form I, as applicable.
As per the notification issued on 8th April 2022 “In exercise of the powers conferred by subsection (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).”
Subscribe Taxscan Premium to view the JudgmentSupport our journalism by subscribing to Taxscan AdFree. Follow us on Telegram for quick updates.
