Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of CRR

RBI/2011-12/438
RPCD.CO.RCB.RRB.BC.No.65/03.05.33/2011-12

All Scheduled State Co-operative Banks / Regional Rural Banks

Dear Sir,

Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of CRR

Please refer to our Circular RPCD.CO.RCB.BC.No.56/07.02.01/2011-12 dated January 25, 2012, on the captioned subject.

2.  On review of the current and evolving liquidity conditions as set out in the Reserve Bank’s Press Release 2011-2012/1441 dated March 9, 2012, it has been decided to reduce the Cash Reserve Ratio (CRR) of Scheduled State Co-operative Banks / Regional Rural Banks, by 75 basis points, from 5.50 per cent to 4.75 per cent, of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning March 10, 2012.

3. A copy of the relative notification RPCD.CO.RCB.RRB.BC.No.64/ 03.05.33/2011-12 dated March 12, 2012, is enclosed.

4. Please acknowledge receipt to our Regional Office concerned.

Yours faithfully,

(C.D.Srinivasan)
Chief General Manager

Encl: one


RPCD.CO.RCB.RRB.BC.No.64/03.05.33/2011-12

March 12, 2012

NOTIFICATION

In exercise of the powers conferred under the sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 and in partial modification of the earlier notification RPCD.CO.RCB.BC.No.55/07.02.01/2011-12 dated January 25, 2012, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled State Co-operative Bank / Regional Rural Bank  shall be 4.75 per cent of its net demand and time liabilities from the fortnight beginning March 10, 2012.

(V.K.Sharma)
Executive Director

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