March
02, 2007
NOTIFICATION
It
has been decided to withdraw the notification No.RPCD.RF.No.6107/07.02.01/ 2005-06
dated June 22, 2006 with immediate effect. In exercise of the powers conferred
by sub-section (7) of Section 42 of the Reserve Bank of India Act, 1934, the Reserve
Bank of India has, however, decided to continue to exempt every Scheduled State
Co-operative Bank from the maintenance of Cash Reserve Ratio (CRR) on the following
liabilities with effect from June 22, 2006:
(i)
Liabilities to the banking system in India as computed under Clause (e) of the
explanation to sub-section (1) of Section 42 of the RBI Act, 1934; and
(ii)
Transactions in Collateralized Borrowing and Lending Obligation (CBLO) with Clearing
Corporation of India Ltd. (CCIL).
The
effective CRR maintained by Scheduled State Co-operative Banks on total demand
and time liabilities shall, however, not be less than 3 per cent of the total
demand and time liabilities.
(V.S.Das)
Executive
Director