RBI/2019-20/191
DOR.No.Ret.BC.49/12.01.001/2019-20

March 27, 2020

All Banks

Dear Sir / Madam

Maintenance of Cash Reserve Ratio (CRR)

Please refer to our Circular DBOD.No.Ret.BC.76/12.01.001/2012-13 dated January 29, 2013 and Circular RPCD.CO.RCB.RRB.BC.No.61/03.05.33/2012-13 dated January 29, 2013 on the captioned subject.

2. As announced in the Seventh Bi-monthly Monetary Policy Statement, 2019-20, March 27, 2020, it has been decided to reduce the Cash Reserve Ratio (CRR) of all banks by 100 basis points from 4.00 per cent to 3.00 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the reporting fortnight beginning March 28, 2020 for a period of one year, ending on March 26, 2021.

3. A copy of the relative notification DOR.No.Ret.BC.50/12.01.001/2019-20 dated March 27, 2020 is enclosed.

4. Please acknowledge receipt.

Yours faithfully

(Dr. S K Kar)
Chief General Manager

Encls: as above

DOR.No.Ret.BC.50/12.01.001/2019-20

March 27, 2020

Notification

2. In exercise of the powers conferred under the sub-section (1) of Section 42 of the Reserve Bank Act, 1934 and sub-section (1) of Section 18 of the Banking Regulation Act, 1949 (10 of 1949), and in partial modification of the earlier notifications DBOD.No.Ret.BC.75/12.01.001/2012-13 dated January 29, 2013, DBOD.No.Ret.BC.79/12.01.001/2012-13 dated January 29, 2013 and RPCD.CO.RCB.RRB.BC.No.60/03.05.33/2012-13 dated January 29, 2013, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Bank shall be 3.00 per cent of its net demand and time liabilities from the fortnight beginning March 28, 2020 for a period of one year, ending on March 26, 2021.

(Lily Vadera)
Executive
Director