December 11, 2006

The Chief Executive Officers of

All Scheduled Primary (Urban) Co-operative Banks

Dear Sir/Madam,

Please refer to our Circular UBD. PCB. Cir 59/16.26.000/2005-06 dated June 22, 2006 on the captioned subject. On review of current macroeconomic and monetary conditions, it has been decided to increase cash reserve ratio (CRR) of scheduled primary (urban) co-operative banks by one-half of one percentage point of their net Demand and Time liabilities (NDTL) in two stages, effective from fortnights as indicated below:

A copy of the relative notification UBD (PCB) No. 22/16.26.000/2006-2007 dated December 11, 2006 is enclosed.

Please acknowledge receipt.

Yours faithfully

(A. K. Khound)
Chief General Manager