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Maintenance of CRR on Exempted Categories

DBOD. No. Ret. BC.57/12.01.001/2009-10

November 05, 2009

All Scheduled Commercial Banks,
(Excluding Regional Rural Banks)

Dear Sir,

Maintenance of Cash Reserve Ratio (CRR) on Exempted Categories

Please refer to our circular DBOD. No. Ret. BC. 84 /12.01.001/2006-07 dated April 20, 2007 on the captioned subject and the Master Circular DBOD. No. Ret.BC.45/12.01.001/2009-10 dated September 18, 2009 on Cash Reserve Ratio (CRR) and Statutary Liquidity Ratio (SLR).

2. As announced in the Second Quarter Review of Monetary Policy 2009-10 released on October 27, 2009, it has been decided that liabilities of scheduled commercial banks arising out of transactions in Collaterised Borrowing and Lending Obligations (CBLO) with Clearing Corporation of India Ltd. (CCIL) shall be subject to maintenance of CRR with effect from the fortnight beginning November 21, 2009. Accordingly, net demand and time liabilities (NDTL) reckoned for CRR shall include liabilities arising out of CBLO transactions for the reporting Friday of November 6, 2009 which forms the base for computation of CRR for the fortnight beginning November 21, 2009. For the subsequent fortnights, NDTL reckoned for CRR maintenance wiil continue to include liabilities arising out of CBLO transactions.

3. Accordingly, with effect from fortnight beginning November 21, 2009, only following liabilities would be exempted for computation of NDTL under section 42(1) of Reserve bank of India Act, 1934.

  1. Liabilities to the banking system in India under clause (d) of the explanation to Section 42(1) of the RBI Act, 1934.

  2. Credit balances in ACU (US$) Accounts.

  3. Demand and Time Liabilities in respect of their Offshore Banking Units (OBUs).

Yours faithfully,

(P. K. Mahapatra)
General Manager