CRR cut for StCBs: 50 bps reduction to 5.00%

RBI/2008-09/344 RPCD.CO.RF.BC.No.81/07.02.01/2008-09 January 05, 2009 All Scheduled State Co-operative Banks Dear Sir, Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of CRR Please refer to our  Circular RPCD.CO.RF.BC.No.57/07.02.01/2008-09 dated November 03, 2008  on the captioned subject. 2. On a review of the current global and domestic macroeconomic situation, and as set out in the Reserve Bank's  Press Release 2008-2009/1023 dated January 02, 2009 , it has been decided to reduce the Cash Reserve Ratio (CRR) for Scheduled State Co-operative Banks by 50 basis points from 5.50 per cent to 5.00 per cent of their net demand and time liabilities (NDTL), effective from the fortnight beginning January 17, 2009. 3. A copy of the relative notification  RPCD.CO.RF.BC.No.80/07.02.01/2008-09 dated January 05, 2009  is enclosed. 4. Please acknowledge receipt to our Regional Office concerned. Yours faithfully, (B.P.Vijayendra) Chief General Manager RPCD.CO.RF.BC.No.80/07.02.01/2008-09 January 05, 2009 NOTIFICATION 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  RPCD.CO.RF.BC.No.56/07.02.01/2008-09 dated November 03, 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 stand reduced by 50 basis points to 5.00 per cent of its net demand and time liabilities, from the fortnight beginning January 17, 2009. (V.S.Das) Executive Director

Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2008-09/344 · issued 05 Jan 2009. 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)