RBI/2006-2007/307
RPCD.CO.RF.BC.No.
64 /07.02.01/2006-07 April
4, 2007 All
Scheduled State Co-operative Banks Dear
Sir Section
42 (1) of RBI Act, 1934 – Maintenance of Cash Reserve Ratio (CRR) Please
refer to our circular No.RPCD.CO.RF.BC
49/07.02.01/2006-07 dated February 14, 2007 read with circular No. RPCD.RF.BC.54/07.02.01/2006-07
dated March 2, 2007 on the captioned subject. As set out in Press Release:
2006-2007/1336 dated March 30, 2007, it has been decided to increase Cash Reserve
Ratio (CRR) of all Scheduled State Co-operative Banks by one-half of one percentage
point of their Net Demand and Time Liabilities (NDTL) in two stages, effective
from the fortnights as indicated below:
| Effective
date (i.e. the
fortnight beginning from) |
CRR
on net demand
and time liabilities (per cent) | |
April
14, 2007 |
6.25 | | April
28, 2007 |
6.50 | However,
the effective CRR maintained by Scheduled State Co-operative Banks on total demand
and time liabilities shall not be less than 3.00 per cent, as stipulated under
the Reserve Bank of India Act, 1934. 2.
A copy of the relevant notification RPCD.CO.RF.BC
65 /07.02.01/ 2006-07 dated April 4, 2007 is enclosed. 3.
Interest on eligible cash balances for CRR At
present, all Scheduled State Co-operative Banks are paid interest at the rate
of 1.00 per cent on eligible cash balances maintained with Reserve Bank of India
under proviso to Section 42 (1) and 42 (1A) of the Reserve Bank of India Act,
1934. It has now been decided that with effect from the fortnight beginning on
April 14, 2007, the Scheduled State Co-operative Banks will be paid interest at
the rate of 0.50 per cent per annum on eligible cash balances maintained with
the Reserve Bank of India under current CRR requirement.
4. Please
acknowledge receipt to our Regional Office concerned. Yours
faithfully, (K.Bhattacharya)
General
Manager |