The Reserve bank of India informed the scheduled commercial banks that the SLR (statutory liquidity ratio) securities (including margin) acquired under the Reserve Bank of India (RBI) - Liquidity Adjustment Facility (LAF), shall not be treated as an eligible asset for the maintenance of SLR under Section 24 of the Banking Regulations Act.

In a notification here, RBI clarified that any funds borrowed from RBI under LAF window will continue not to form part of liabilities for the purpose of maintenance of Cash Reserve Ratio and SLR.

It said the SLR status of securities issued by the Government of India and the State Governments will be indicated in the Press Release issued by the Reserve Bank of India at the time of issuance of the securities and an updated and current list of the SLR securities will be posted on the Reserve Bank’s website (http://www.rbi.org.in/) under the link ‘Database on Indian Economy’.

UNI