RPCD.CO.RF.BC.No.76/07.02.01/2006-07
April
24, 2007
NOTIFICATION
Consequent
upon the notification of Section 3 of the Reserve Bank of India (Amendment) Act,
2006 coming into force with effect from April 01, 2007, the amendment carried
out to sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 (2
of 1934) has been brought into force. Accordingly, the statutory minimum Cash
Reserve Ratio (CRR) requirement of 3 per cent of the total demand and time liabilities
in respect of Scheduled State Co-operative Banks no longer exists with effect
from April 01, 2007. Therefore, it has been decided to modify the operation
of the notification RPCD.RF.BC.55/07.02.01/2006-07 dated March 02, 2007 accordingly
with effect from April 01, 2007. 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 hereby exempts every Scheduled State Co-operative Bank from the maintenance
of Cash Reserve Ratio (CRR) on the following liabilities with effect from
April 01, 2007:
(i) Liabilities to the banking system in
India as computed under Clause (e) of the explanation to sub-section (1) 4/24/2007
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).
(V.S.Das)
Executive Director