During Phase I, responding to the clamour for regulatory forbearance, banks were permitted to hold G-Secs up to the mandated Statutory Liquidity Ratio (SLR) of 25% of Demand and Time Liabilities (DTL) under the Held to Maturity (HTM) accounting category.
Regulation also enabled banks to shift securities from other accounting categories into the HTM category, as a one-time measure, a feature that has now acquired an annual dimension. A similar one-time transfer was extended during Phase III, in addition to deferment in recognition of valuation losses by six months, from September 2013 to March 2014.