RBI/2011-12/369
UBD.BPD. (PCB). CIR.No. 2 /12.03.000/2011-12
The Chief Executive Officers of
All Scheduled Primary (Urban) Co-operative Banks
Dear Sir,
Section 42(1) of Reserve Bank of India Act, 1934
Maintenance of Cash Reserve Ratio (CRR)
Please refer to our Circular UBD (PCB).No.3/12.03.000/2009-10 dated April 21, 2010 on the captioned subject.
2. The Reserve Bank in its Third Quarter Review of Monetary Policy 2011-12 issued on January 24, 2012, decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Primary (Urban) Co-operative Banks by 50 basis points from 6.00 per cent to 5.50 per cent of their net demand and time liabilities (NDTL), with effect from the fortnight beginning January 28, 2012.
3. A copy of the relative notification UBD.(PCB).No./ 6 /12.03.000/2011-12 dated January 25, 2012 is enclosed.
4. Please acknowledge receipt.
Yours faithfully,
(A. Udgata)
Chief General Manager-in-Charge
Encl: 1
UBD.BPD. (PCB). DIR.No. 6 /12.03.000/2011-12
January 25, 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 UBD.(PCB).No./2/12.03.000/2009-10 dated April 21, 2010, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Primary (Urban) Co-operative Bank shall be 5.50 per cent of its net demand and time liabilities, from the fortnight beginning January 28, 2012.
(S. Karuppasamy)
Executive Director
