What changed
The Cash Reserve Ratio (CRR) for Scheduled Urban Co-operative Banks was reduced from 4.50% to 4.25% of Net Demand and Time Liabilities (NDTL). The change takes effect from the fortnight starting November 3, 2012, as per RBI notification UBD.BPD.(SCB).No.3/12.03.000/2012-13.
What it means for you
This 25 bps CRR cut releases additional funds for urban co-operative banks, improving their liquidity position. Banks can now deploy more resources for lending or other operations, potentially boosting credit flow in the urban co-operative sector.
What you must do
- Update your CRR maintenance calculations to 4.25% of NDTL from November 3, 2012.
- Ensure compliance with the revised CRR for the fortnight beginning November 3, 2012.
- Acknowledge receipt of this circular to your regional RBI office.
Who it affects
All Scheduled Primary (Urban) Co-operative Banks, Treasury and compliance teams at UCBs
What is the new CRR rate for Urban Co-operative Banks?
The new CRR rate is 4.25% of Net Demand and Time Liabilities (NDTL), effective from the fortnight beginning November 3, 2012.
When does this CRR change take effect?
It takes effect from the fortnight starting November 3, 2012.