RBI/2011-12/434
Ref: DBOD.No.Ret.BC.86 /12.01.001/2011-12
March 09, 2012
All Scheduled Commercial Banks
(Excluding Regional Rural Banks)
Dear Sir,
Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of CRR
Please refer to our Circular DBOD.No.Ret.BC.74/12.01.001/2011-12 dated January 24, 2012 on the captioned subject.
2. On review of the current and evolving liquidity conditions as set out in the Reserve Bank's Press Release 2011-2012/1441 dated March 9, 2012, it has been decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Commercial Banks by 75 basis points from 5.50 per cent to 4.75 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning March 10, 2012.
3. A copy of the relative notification DBOD.No.Ret.BC.85/12.01.001/2011-12 dated March 09, 2012 is enclosed.
4. Please acknowledge receipt.
Yours faithfully
(P. R. Ravi Mohan)
Chief General Manager
Encls: one
DBOD.No.Ret.BC.85 /12.01.001/2011-12
March 09, 2012
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 DBOD.No. Ret.BC.73/12.01.001/2011-12 dated January 24, 2012, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Commercial Bank shall be 4.75 per cent of its net demand and time liabilities from the fortnight beginning March 10, 2012.
(G. Padmanabhan)
Executive Director |