Panel mooted removing floor on SLR, says FinMin
By TNN |
Highlights
NEW DELHI: The finance ministry on Tuesday said the standing committee had recommended the amendment to remove the floor on SLR currently stipulated at 25%.
���The Banking Regulation (Amendment) Bill, 2005, has, vide clause 6, proposed to amend Section 24 of the Banking Regulation Act to remove the floor while retaining the upper limit at 40%. The Bill was examined by the standing committee on finance. The standing committee has recommended the amendment to remove the floor on SLR,��� an official statement said.
It said two notes of dissent were appended to the report of the standing committee, which dealt with some other provisions of the Banking Regulation (Amendment) Bill and do not take a view contrary to the view of the standing committee on Clause 6 of the amendment Bill.
���Hence, the proposal of the government to remove the floor limit on SLR has received the unanimous recommendation of the standing committee on finance. It will give operational flexibility to the Reserve Bank of India in the conduct of monetary policy,��� the statement said.
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