The Reserve Bank of India (RBI) has extended the dispensation of enhanced HTM (held to maturity) limit of 23 per cent of deposits in respect of statutory liquidity ratio (SLR) securities up to March 31, 2024, to enable banks to better manage their investment portfolios
So, banks can include SLR securities (Government Securities and State Development Loans) acquired between September 1, 2020, and March 31, 2024, in the enhanced HTM limit.
The HTM limits would be restored from 23 per cent to 19.5 per cent in a phased manner starting from the quarter ending June 30, 2024, RBI said.
With enhanced headroom, banks can park their investments in government securities and state development loans in the HTM bucket without worrying about provisioning for investment depreciation in a rising interest rate regime.