CRR Floor Removed for StCBs; Rates Hiked to 6.50%

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Government of India in their Extraordinary Gazette notification No.S.O.337 (E) dated March 9, 2007 have notified April 01, 2007 as the date on which the provisions of Section 3 of the Reserve Bank of India (Amendment) Act, 2006 shall come into force. Consequent upon the provisions of Section 3 of the Reserve Bank of India (Amendment) Act, 2006 coming into force, the amendment carried out to sub-section (1) of Section 42 of Reserve Bank of India Act, 1934 has been brought into force with effect from April 01,2007. Accordingly, the statutory minimum CRR requirement of 3 per cent of total demand and time liabilities no longer exists with effect from the said notified date. The Reserve Bank of India, having regard to the needs of securing the monetary stability in the country, may from time to time prescribe the CRR for Scheduled State Co-operative Banks without any floor and ceiling rate. 2. In exercise of the powers conferred on the Reserve Bank of India, it has been decided to continue the status quo on the rate of CRR to be maintained by Scheduled State Co-operative Banks and the extant exemptions which will be operative till further changes are notified. Accordingly, Scheduled State Co-operative Banks shall continue to maintain CRR on their total demand and time liabilities, subject to the exemptions as indicated in our circular RPCD.CO.RF.BC.No.77/07.02.01/2006-07 dated April 24, 2007 from the fortnights as detailed below: Effective date (i.e., the fortnight beginning from) CRR on net demand and time liabilities (per cent) April 14, 2007 6.25 April 28, 2007 6.50 3. Further, in view of Section 3 of the Reserve Bank of India (Amendment) Act, 2006 coming into force, sub-section (1B) of Section 42 of the Reserve Bank of India Act, 1934 stands omitted with effect from April 01, 2007.  Consistent with the amendment and in partial modification of our Circulars RBI/2006-2007/276 RPCD.CO.RF.BC.54/07.02.01/2006-07 dated March 02, 2007 and RBI/2006-07/307 RPCD.CO.RF.BC.No.64/07.02.01/2006-07 dated April 4, 2007, it has been decided that with effect from the fortnight beginning March 31, 2007, the Reserve Bank of India will not be paying any interest on the CRR balances maintained by Scheduled State Co-operative Banks. 4. A copy of the relative notification RPCD.CO.RF.BC.No.74/07.02.01/2006-07 dated April 24, 2007 is enclosed. 5. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, (K.Bhattacharya) General Manager 2026 All Months January February March April May June July August September October November December 2025 All Months January February March April May June July August September October November December 2024 All Months January February March April May June July August September October November December 2023 All Months January February March April May June July August September October November December 2022 All Months January February March April May June July August September October November December 2021 All Months January February March April May June July August September October November December 2020 All Months January February March April May June July August September October November December 2019 All Months January February March April May June July August September October November December 2018 All Months January February March April May June July August September October November December 2017 All Months January February March April May June July August September October November December Archives 2016 All Months January February March April May June July August September October November December 2015 All Months January February March April May June July August September October November December 2014 All Months January February March April May June July August September October November December 2013 All Months January February March April May June July August September October November December 2012 All Months January February March April May June July August September October November December 2011 All Months January February March April May June July August September October November December 2010 All Months January February March April May June July August September October November December 2009 All Months January February March April May June July August September October November December 2008 All Months January February March April May June July August September October November December 2007 All Months January February March April May June July August September October November December 2006 All Months January February March April May June July August September October November December 2005 All Months January February March April May June July August September October November December 2004 All Months January February March April May June July August September October November December 2003 All Months January February March April May June July August September October November December 2002 All Months January February March April May June July August September October November December 2001 All Months January February March April May June July August September October November December 2000 All Months January February March April May June July August September October November December 1999 All Months January February March April May June July August September October November December 1998 All Months January February March April May June July August September October November December 1997 All Months January February March April May June July August September October November December 1996 All Months January February March April May June July August September October November December 1995 All Months January February March April May June July August September October November December 1994 All Months January February March April May June July August September October November December 1993 All Months January February March April May June July August September October November December 1992 All Months January February March April May June July August September October November December 1991 All Months January February March April May June July August September October November December Top Back to previous page More Links : Bank Holidays Banking Glossary Citizen's Charter Complaints Contact Us COVID-19 Measures E-LMS Events FAQs Financial Education Forms IFSC/MICR Codes Important Websites Opportunities @ RBI RBI Clarifications RBI Kehta Hai RBI’s Vision and Values (1257 kb)--> Right to Information Act Tenders Follow RBI RSS Twitter YouTube Instagram Facebook LinkedIn © Reserve Bank of India. 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Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2006-2007/339 · issued FY 2006-07. The plain-English explanation above is BankPulse’s own independent summary.

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Topics: Co-operative Banks

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Key termsPlain-English definitions of terms in this circular — see the full Indian banking glossary. KYC / AML · Gross NPA (GNPA) · Deposit insurance (DICGC) · Scheduled Commercial Bank (SCB)