Answer-RBI has permitted Commercial Banks to keep Held to Maturity (HTM) limit of ……………………of Net Demand and...

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At present, banks have been granted a special dispensation of enhanced Held to Maturity HTM limit of 22 per cent of Net Demand and Time Liabilities NDTL, for Statutory Liquidity Ratio SLR eligible securities acquired between September 1, 2020 and March 31, 2022, until March 31, 2023.  On a review, it has now been decided to further enhance the existing HTM limit of 22 per cent of NDTL to 23 per cent of NDTL and allow banks to include securities acquired between April 1, 2022 and March 31, 2023 under the enhanced limit of 23 per cent.  The enhanced HTM limit of 23 per cent shall be restored to 19.5 percent in a phased manner, beginning from the quarter ending June 30, 2023, i.e. the excess SLR securities acquired by banks during the period September 1, 2020 to March 31, 2023 shall be progressively reduced such that the total SLR securities held in the HTM category as a percentage of the NDTL do not exceed  a. 22.00 per cent as on June 30, 2023 b. 21.00 per cent as on September 30, 2023 c. 20.00 per cent as on December 31, 2023 d. 19.50 per cent as on March 31, 2024

RBI has permitted Commercial Banks to keep Held to Maturity (HT

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