The Reserve Bank of India (RBI) on December 08, 2022, updated the Master Direction – Classification, Valuation, and Operation of Investment Portfolio of Commercial Banks (Directions), 2021, to enable banks to have current instructions in one place. A Master Direction incorporating all the existing guidelines/instructions/directives on the subject has been prepared for reference of the banks.
The amendment has provided that banks may exceed the ceiling up to an overall limit of 23 percent of NDTL (instead of 19.5 percent) till March 31, 2024, provided such excess is on account of SLR securities acquired between September 1, 2020, and March 31, 2024.
The amendment has further provided that the excess SLR securities acquired by banks during the period September 1, 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.
