Mumbai: The Reserve Bank today announced reduction of Statutory Liquidity Ratio (SLR), requirement for lenders to keep a portion of deposits in government securities, cash and gold, by one percentage point to 24 percent for regional rural banks (RRBs).
This is in line with the similar cut announced in the monetary review for banks earlier this month as part of its measure to bring more liquidity into the system.
The new requirement for the RRBs is effective from December 18.
"It has been decided to reduce the SLR for RRBs from 25 per cent of their Net Demand and Time Liabilities (NDTL) to 24 percent with effect from December 18," RBI said in a notification.
The new measure would mean that RRBs can now keep less of government securities and have more lendable resources for credit needs.
Source: PTI
