MUMBAI, Jan 9 (Reuters) - India's central bank is
considering a proposal to bring down the held-to-maturity limit
in debt for banks in a non-disruptive manner, Reserve Bank of
India Deputy Governor H.R. Khan said on the sidelines of an
event on Wednesday.
"We are working on that," Khan said, adding a decision was
Held-to-maturity is a category of debt that banks must hold
until redemption but which can be reshuffled once a year.
The limit is currently set at 25 percent but traditionally
has been aligned with the banks' statutory liquidity ratio
(SLR), or the mandated portion of deposits which banks must
invest in government bonds and other approved securities, which
is currently at 23 percent.
The RBI had said in October it was looking into a
recommendation from a central bank committee to cut the HTM
Khan also said the RBI was considering carving out a portion
of the SLR for liquidity purposes, although he did not provide
(Reporting by Shamik Paul; Writing by Swati Bhat; Editing by