Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories

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Published on April 24, 2007

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Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories

RBI/2006-2007/340
RPCD.CO.RF.BC.No.77/07.02.01/2006-07

April 24, 2007

All Scheduled State Co-operative Banks
Dear Sir,

Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories

Please refer to our Circular RBI/2006-2007/277 RPCD.RF.BC.56/07.02.01/2006-07 dated March 02, 2007 on the captioned subject. Consequent upon the notification of Section 3 of the Reserve Bank of India (Amendment) Act, 2006 coming into force with effect from April 01,2007, the statutory minimum CRR requirement of 3 per cent of total demand and time liabilities no longer exists. It has been decided to modify the above circular accordingly, with effect from April 01, 2007. Therefore, every Scheduled State Co-operative Bank shall be exempted from maintaining average CRR with effect from April 01, 2007 on the following liabilities as computed under Section 42 (1) of the Reserve Bank of India Act, 1934.

(i) Liabilities to the banking system in India as computed under Clause (e) of the Explanation to Section 42 (1) of the RBI Act, 1934; and

(ii) Transactions in Collateralized Borrowing and Lending Obligation (CBLO) with Clearing Corporation of India Ltd. (CCIL).

2. A copy of the relative notification RPCD.CO.RF.BC.No.76/07.02.01/2006-07 dated April 24, 2007 is enclosed.

3. Please acknowledge receipt to our Regional Office concerned.

Yours faithfully,

(K.Bhattacharya)
General Manager