Informist, Wednesday, Dec 7, 2022

MUMBAI – The Reserve Bank of India today extended the dispensation of the enhanced limit of 23% under the held-to-maturity investment category Mar 31, 2024 for statutory liquidity ratio-eligible government securities.

Banks will be allowed to include securities acquired between Sep 1, 2020 and Mar 31, 2024 in the enhanced held-to-maturity limit.

In April, the central bank had increased the limit under the held-to-maturity category to 23% of net demand and time liabilities, from 22%, and the dispensation of the enhanced limit was extended till Mar 31, 2023. 

"To provide further flexibility to banks in managing their investment portfolios, it has been decided to extend the dispensation of enhanced HTM limit of 23% up to March 31, 2024," Governor Shaktikanta Das said at the outcome of the Monetary Policy Committee meeting today, where the repo rate was raised by 35 basis points to 6.25%.

Going forward, the limits would be restored to 19.5% from 23% in a phased manner, starting from the quarter ending Jun 30, 2024, the RBI said. More.

Informist, Wednesday, Dec 7, 2022

MUMBAI – The Reserve Bank of India today extended the dispensation of the enhanced limit of 23% under the held-to-maturity investment category Mar 31, 2024 for statutory liquidity ratio-eligible government securities.

Banks will be allowed to include securities acquired between Sep 1, 2020 and Mar 31, 2024 in the enhanced held-to-maturity limit.

In April, the central bank had increased the limit under the held-to-maturity category to 23% of net demand and time liabilities, from 22%, and the dispensation of the enhanced limit was extended till Mar 31, 2023. 

"To provide further flexibility to banks in managing their investment portfolios, it has been decided to extend the dispensation of enhanced HTM limit of 23% up to March 31, 2024," Governor Shaktikanta Das said at the outcome of the Monetary Policy Committee meeting today, where the repo rate was raised by 35 basis points to 6.25%.

Going forward, the limits would be restored to 19.5% from 23% in a phased manner, starting from the quarter ending Jun 30, 2024, the RBI said. More.