What changed
The Cash Reserve Ratio for Scheduled State Co-operative Banks and Regional Rural Banks was reduced by 25 basis points, from 4.25% to 4.00% of their Net Demand and Time Liabilities. The change takes effect from the fortnight beginning February 9, 2013.
What it means for you
This CRR cut releases additional funds for StCBs and RRBs, improving their liquidity position. Banks can deploy these freed resources for lending or other investments, potentially supporting rural credit growth. The move aligns with RBI's broader monetary easing stance.
What you must do
- Recalculate CRR maintenance at 4.00% of NDTL from the fortnight starting February 9, 2013.
- Adjust liquidity management and treasury operations to account for released funds.
- Update internal systems and reporting processes to reflect the new CRR rate.
- Communicate the change to relevant branches and compliance teams.
Who it affects
Scheduled State Co-operative Banks, Regional Rural Banks, Treasury and compliance departments of these banks
When does the new CRR rate become effective?
The reduced CRR of 4.00% applies from the fortnight beginning February 9, 2013.
What was the previous CRR rate for StCBs and RRBs?
The earlier CRR rate was 4.25% of NDTL, as per the circular dated October 30, 2012.
Does this circular apply to all co-operative banks?
No, it specifically applies to Scheduled State Co-operative Banks and Regional Rural Banks.