RBI vide Notification No. RBI/2021-22/82 dated 9th August, 2021 has notified the extension of Relaxation for maintenance of Statutory Liquidity Ratio(SLR)- Marginal Standing Facility(MSF)
i. The banks were allowed to avail of funds under the MSF by dipping into the Statutory Liquidity Ratio (SLR) up to an additional one per cent of their net demand and time liabilities (NDTL), i.e., cumulatively up to three per cent of NDTL.
ii. This facility, which was initially available up to June 30, 2020, was later extended in phases up to September 30, 2021, providing comfort to banks on their liquidity requirements and also to enable them to meet their Liquidity Coverage Ratio (LCR) requirements. It has now been decided to continue with the MSF relaxation for a further period of three months, i.e., up to December 31, 2021.