November 03, 2008

All Scheduled Commercial Banks
(excluding Regional Rural Banks)

Dear Sir,

Please refer to our Circular DBOD. No. Ret. BC.61 /12.01.001/ 2008-09 dated October 15, 2008 on the captioned subject.

2. On a review of the current and evolving macroeconomic situation and liquidity conditions in the global and domestic financial markets, and as set out in the RBI Press Release 2008-2009/603 dated November 01, 2008, it has been decided to reduce the Cash Reserve Ratio (CRR) for Scheduled Commercial Banks by 100 basis points from 6.50 per cent to 5.50 per cent of their net demand and time liabilities (NDTL) in two stages, effective from fortnights as indicated below:

3. A copy of the relative notification DBOD. No. Ret. BC.70 /12.01.001/2008-2009 dated November 03, 2008 is enclosed.

4. Please acknowledge receipt.

Yours faithfully

(P. K. Mahapatra)
General Manager

DBOD.No.Ret.BC.70 /12.01.001/2008-2009

November 03, 2008

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 DBOD.No.Ret.BC.60/12.01.001/2008-09 dated October 15, 2008, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Commercial Bank of its net demand and time liabilities shall, from effective dates mentioned below, be at the percentage points as indicated thereagainst