CRR Cut for Scheduled State Co-operative Banks by 50 bps

RBI/2007-2008/204 RPCD.CO.RF.BC.No. 39/07.02.01/2008-09 October 7, 2008 All Scheduled State Co-operative Banks Dear Sir, Section 42(1) of Reserve Bank of India Act, 1934 - Maintenance of CRR - Scheduled State Co-operative Banks Please refer to our Circular  RPCD.CO.RF.BC.No.15/07.02.01/2008-09 dated July 30, 2008  on the captioned subject. On a review of the current liquidity situation in the context of global and domestic developments, and as set out in the RBI Press Release 2008-2009/447 dated October 6, 2008, it has been decided to reduce the Cash Reserve Ratio (CRR) of Scheduled State Co-operative Banks by 50 basis points from 9.00 per cent to 8.50 per cent of their net demand and time liabilities (NDTL) with effect from the fortnight beginning October 11, 2008. This measure is ad hoc, temporary in nature and will be reviewed on a continuous basis in the light of the evolving liquidity conditions. 2. A copy of the relative notification  RPCD.CO.RF.BC.NO.38/07.02.01/2008-09 dated October 7, 2008  is enclosed. 3. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, (G. Srinivasan) Chief General Manager-in-Charge RPCD.CO.RF.BC.No. 38 /07.02.01/2008-09 October 7, 2008 NOTIFICATION In exercise of the powers conferred under sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 and in partial modification of its notification  RPCD.CO.RF.BC.No.14/07.02.01/2008-09 dated July 30, 2008 , the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled State Co-operative Bank shall be reduced by 50 basis points to 8.50 per cent of its net demand and time liabilities from the fortnight beginning from October 11, 2008. (V.S.Das) Executive Director

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2007-2008/204 · issued 07 Oct 2008. The plain-English explanation above is BankPulse’s own independent summary.

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Topics: Co-operative Banks

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