Skip to main content

SLR holdings in HTM category

Reserve Bank of India (RBI) has enhanced the Held to Maturity (HTM) limit for Statutory Liquidity Ratio (SLR) eligible securities.

What is Statutory Liquidity Ratio (SLR)?

Banks shall maintain in India assets (SLR assets) the value of which shall not, at the close of business on any day, be less than 18% (not exceeding 40%) of their total net demand and time liabilities in India as on the last Friday of the second preceding fortnight.

How is SLR to be maintained by banks?

The SLR can be maintained by banks in the following forms –

  1. Cash
  2. Gold
  3. Unencumbered investment in any of the following approved securities / SLR securities –

    • Dated securities of the Government of India 
    • Treasury Bills of the Government of India
    • Cash Management Bill (CMB) 
    • State Development Loans (SDLs) of the State Governments 
    • Any other instrument as may be notified by RBI (as and when prescribed)

What are investment categories?

Banks shall classify their entire investment portfolio (including SLR securities and non-SLR securities) under three categories –

  1. Held to Maturity (HTM) – means the category of investment portfolio maintained by the banks with intention to hold securities up to maturity.
  2. Available for Sale (AFS) – means the category of investment portfolio of banks, which do not fall within the HTM or HFT category.
  3. Held for Trading (HFT) – means the category of investment portfolio maintained by the banks with intention to trade in securities by taking advantage of the short-term price / interest rate movements.

What is the HTM limit for SLR eligible securities?

Total SLR securities held in the HTM category shall not be more than 19.5% of Net Demand and Time Liabilities (NDTL) as on the last Friday of the second preceding fortnight.

What relaxations have been granted in the prescribed limits?

Banks have been granted a special dispensation of enhanced HTM limit of 22% of NDTL, for SLR eligible securities acquired between September 01, 2020 and March 31, 2022, until March 31, 2023.

On a review in April 2022 –

  • The existing HTM limit of 22% of NDTL has been further enhanced to 23% of NDTL.
  • Banks have also been allowed to include securities acquired between April 01, 2022 and March 31, 2023 under the enhanced limit of 23%.

On a review in December 2022 –

  • Banks have been allowed to include securities acquired between September 01, 2020 and March 31, 2024 under the enhanced limit of 23%.

When shall the enhanced limit be restored?

The enhanced HTM limit of 23% shall be restored to 19.5% in a phased manner, beginning from the quarter ending June 30, 2024, i.e. the excess SLR securities acquired by banks during the period September 01, 2020 to March 31, 2024 shall be progressively reduced such that the total SLR securities held in the HTM category as a percentage of the NDTL do not exceed –

  • 22% as on June 30, 2024
  • 21% as on September 30, 2024
  • 20% as on December 31, 2024
  • 19.5% as on March 31, 2025


(updated on December 20, 2022)


References

Reserve Bank of India. (2021, August 25). 'Master Direction - Classification, Valuation and Operation of Investment Portfolio of Commercial Banks (Directions), 2021 (Updated as on April 8, 2022)'. Retrieved from https://m.rbi.org.in/SCRIPTs/BS_ViewMasDirections.aspx?id=12153

Reserve Bank of India. (2021, July 20). 'Master Direction - Reserve Bank of India [Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)] Directions - 2021 (Updated as on April 06, 2022)'. Retrieved from https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx?id=12131

Reserve Bank of India. (2022, April 08). 'Review of SLR holdings in HTM category'. Retrieved from https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=12287&Mode=0#:~:text=3.,4.


Follow at - Telegram   Instagram   LinkedIn   Twitter

Labels:

Comments

Post a Comment

Popular Posts

Guidelines on Money Changing Activities (Updated as on May 06, 2026)

Reserve Bank of India (RBI) has updated the guidelines on money changing activities. What are the guidelines for appointment of agents / franchisee? RBI had permitted Authorised Dealers (ADs) Category - I, ADs Category - II and Full Fledged Money Changers (FFMCs) to enter into agency or franchisee agreements at their option for the purpose of carrying restricted money changing business i.e. conversion of foreign currency notes, coins or travellers' cheques into Indian Rupees (INR).  A franchisee can be any entity which has a place of business and a minimum Net Owned Funds of ₹10 lakh.  Franchisees can undertake only restricted money changing business. Franchisees of AD Category - I / AD Category - II / FFMCs functioning within 10 kms from the borders of Pakistan and Bangladesh may also sell the currency of the bordering country, with the prior approval of RBI.  Other franchisees of AD Category - I / AD Category - II / FFMCs cannot sell foreign currency. An authorised pers...
Post a Comment
Read more

Utkarsh 2029

Reserve Bank of India (RBI) has published its medium-term strategy framework – Utkarsh 2029, for the period April 2026 to March 2029. Utkarsh RBI had first formulated its medium-term strategy framework, viz. ‘Utkarsh 2022’ for the period 2019-2022 in July 2019, replacing its annual action plans as the latter spanned over a short period, insufficient to pursue strategic objectives.  The strategic framework contained, inter alia, RBI’s Mission, Core Purpose, Values and Vision Statements, reiterating RBI’s commitment to the Nation. It became a medium-term strategy document guiding RBI’s progress towards realisation of the identified milestones. The subsequent strategy framework, i.e., ‘Utkarsh 2.0’, spanned the period 2023-25. Utkarsh 2029  Utkarsh 2029 is the medium-term strategy framework for the period April 2026 to March 2029. Utkarsh 2029 has a 3-layered structure consisting of strategy pillars guided by the vision and values of RBI. Vision of Utkarsh 2029 – Continue excelle...
Post a Comment
Read more

Digital Payments – E-mandate Framework 2026

Reserve Bank of India (RBI) has issued e-mandate framework for digital payments. What is an e-mandate?  A mandate is a standard instruction that a customer provides to his / her issuing bank and other institutions allowing them to automatically debit the mentioned amount from his / her bank account. e-mandate is the electronic version of it. To whom shall the framework be applicable? The framework shall be applicable to Payment System Providers and Payment System Participants. To which transactions shall the framework be applicable? The framework shall be applicable to processing of recurring transactions, domestic or cross-border, using cards / Prepaid Payment Instrument (PPI) / Unified Payments Interface (UPI). What are the guidelines for registration and revocation of e-mandate? A customer desirous of opting for e-mandate facility shall undertake a one-time registration process. The mandate shall be registered only after successful validation of additional factor of authenticati...
Post a Comment
Read more

Treatment of Wilful Defaulters and Large Defaulters

Reserve Bank of India (RBI) had issued the directions on treatment of wilful defaulters and large defaulters. To whom shall the directions be applicable? The directions shall be applicable to the following Regulated Entities (REs) – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) All India Financial Institutions (AIFIs) regulated by RBI – Export Import Bank of India (EXIM Bank) National Bank for Agriculture and Rural Development (NABARD) National Housing Bank (NHB) Small Industries Development Bank of India (SIDBI) National Bank for Financing Infrastructure and Development (NaBFID) Non-Banking Financial Companies (NBFCs) categorized as Middle Layer and above layers – Deposit taking NBFC (NBFC-D) NBFC-Investment and Credit Companies (NBFC-ICC) NBFC-Factor  NBFC-Micro Finance Institutions (NBFC-MF...
Post a Comment
Read more

Credit Information Reporting

Reserve Bank of India (RBI) had issued directions on credit information reporting by the regulated entities. What are Credit Information Companies (CICs)? Credit Information Companies (CICs) mean companies that have been granted a certificate of registration by RBI under section 5 of the Credit Information Companies (Regulations) Act, 2005 (CICRA).  The following CICs are registered with RBI – CRIF High Mark Credit Information Services Private Limited Equifax Credit Information Services Private Limited Experian Credit Information Company of India Private Limited TransUnion CIBIL Limited What are Credit Institutions (CIs)? Credit Institutions (CIs) mean the following institutions – Commercial Banks  Small Finance Banks (SFBs) Local Area Banks (LABs) Regional Rural Banks (RRBs) Primary (Urban) Co-operative Banks (UCBs) Rural Co-operative Banks – State Co-operative Banks (StCBs) Central Co-operative Banks (CCBs) All India Financial Institutions (AIFIs) regulated by RBI – Export I...
Post a Comment
Read more