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Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of Cash Reserve Ratio (CRR)

RPCD.CO.RF.BC.No.74 /07.02.01/2006-07

April 24, 2007

NOTIFICATION

Consequent upon the notification of Section 3 of the Reserve Bank of India (Amendment) Act, 2006, the amendment carried out to sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 (2 of 1934) has come into force with effect from April 01, 2007.  Accordingly, the minimum Cash Reserve Ratio (CRR) requirement of 3 per cent of the total demand and time liabilities no longer exists in respect of Scheduled State Co-operative Banks with effect from April 01, 2007. It has been decided to modify the operation of Notification RPCD.CO.RF.BC.65/07.02.01/2006-07 dated April 4, 2007 accordingly. Further, in exercise of the powers conferred under the amended sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934, the Reserve Bank of India hereby notifies that every Scheduled State Co-operative Bank should continue to maintain a Cash Reserve Ratio of 6.25 per cent from the fortnight beginning from April 14, 2007 and 6.50 per cent from the fortnight beginning from April 28, 2007, subject to the exemptions as envisaged in Notification No.RPCD.CO.RF.BC.No.76/ 07.02.01/2006-2007 dated April 24, 2007.

(V.S.Das)
Executive Director


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