RBI/2019-20/189
DOR.No.Ret.BC.52/12.01.001/2019-20

March 27, 2020

All Scheduled Banks (excluding Regional Rural Banks)

Dear Sir / Madam

Section 24 of the Banking Regulation Act, 1949 – Maintenance of Statutory Liquidity Ratio (SLR) – Marginal Standing Facility (MSF)

Please refer to our Circular DBOD.No.Ret.BC.95/12.02.001/2011-12 dated April 17, 2012, Circular UBD.BPD.(SCB).Cir.No.1/16.27.000/2014-15 dated October 29, 2014 and DCBR.BPD.(PCB/RCB).Cir.No.3/16.27.000/2018-19 dated August 16, 2018 on Marginal Standing Facility (MSF) Scheme.

2. As announced in the Statement of Developmental and Regulatory Policies, March 27, 2020, it has been decided to raise the borrowing limit of Scheduled Banks (excluding Regional Rural Bank) under the MSF scheme from 2 per cent to 3 per cent of their Net Demand and Time Liabilities (NDTL) outstanding at the end of the second preceding fortnight with immediate effect. The enhanced limit will be applicable up to June 30, 2020.

3. Please acknowledge receipt.

Yours faithfully

(Dr. S K Kar)
Chief General Manager