In response to some media reports, Reserve Bank has clarified that as indicated in its circular dated August 23, 2013 the option for spreading the Mark to Market (MTM) loses over the three quarters has ended on March 31, 2014 and no further extension has been allowed.

It has further clarified that as indicated in the above circular banks are permitted to exceed the limit of 25 per cent of total investments under the HTM category provided the excess comprises only SLR securities and the total SLR securities held in the Held to Maturity (HTM) category is not more than 24.50 per cent of their Net Demand Time Liabilities (NDTL) as on last Friday of the second preceding fortnight. The position will be reviewed based on evolving situation.

Ajit Prasad
Assistant General Manager

Press Release : 2013-2014/1944