What changed
The circular, issued on August 1, 2007, under reference RBI/2007-2008/108, increases the CRR for Scheduled State Co-operative Banks by 50 basis points from the previous rate to 7.00%, effective from the fortnight beginning August 4, 2007.
What it means for you
For Scheduled State Co-operative Banks, this circular mandates an increase in the Cash Reserve Ratio (CRR) to 7.00% of total demand and time liabilities, effective from the fortnight starting August 4, 2007. Banks must ensure compliance with the new CRR requirement.
What you must do
- Maintain a Cash Reserve Ratio (CRR) of 7.00% of total demand and time liabilities from the fortnight beginning August 4, 2007.
- Acknowledge receipt of the circular to the respective Regional Office of RBI.
- Refer to the enclosed notification for detailed exemptions as per the April 24, 2007 circular.
Who it affects
All Scheduled State Co-operative Banks
What is the purpose of this circular?
The circular increases the Cash Reserve Ratio (CRR) for Scheduled State Co-operative Banks by 50 basis points to 7.00%, effective from the fortnight beginning August 4, 2007.
When was this circular issued?
It was issued on August 1, 2007, under reference RBI/2007-2008/108.
Who should act on this circular?
All Scheduled State Co-operative Banks must maintain the new CRR of 7.00% and acknowledge receipt to their Regional Office.