RBI/2006-2007/311
Ref:
UBD (PCB).No./5 /12.03.000/2006-07 April
05, 2007 The
Chief Executive Officers of
All
Scheduled Primary (Urban) Co-operative Banks Dear
Sir, Section
42(1) of Reserve Bank of India Act, 1934- Maintenance of Cash Reserve Ratio (CRR) Please
refer to our Circular UBD
(PCB) Cir. No.3/12.03.000/2006-07 dated March 01, 2007 on the captioned subject.
As set out in the Press Release 2006-2007/1336 dated March 30, 2007, it has been
decided to increase the Cash Reserve Ratio (CRR) of Scheduled Primary (Urban)
Co-operative Banks by one-half of one percentage point of their Net Demand and
Time Liabilities (NDTL) in two stages, effective from the fortnights indicated
below:
| Effective
Date
(i.e., the fortnight beginning from) |
CRR
on net demand
and time liabilities (per cent) | |
April
14, 2007 | 6.25 |
| April
28, 2007 | 6.50 |
However,
the effective CRR required to be maintained by Scheduled Primary (Urban) Co-operative
Banks on total Demand and Time Liabilities shall not be less than 3.00 per cent,
as stipulated under the Reserve Bank of India Act, 1934. 2.
A copy of the relevant notification UBD
(PCB) No./5/12.03.000/2006-07 dated April 05, 2007 is enclosed. 3.
Interest on eligible cash balances for CRR At
present all Scheduled Primary (Urban) Co-operative Banks are paid interest at
the rate of 1.00 percent on eligible cash balances maintained with Reserve Bank
of India under the provisio to section 42 (1) and 42 (1A) of the Reserve Bank
of India Act, 1934. It has now been decided that with effect from the fortnight
beginning April 14, 2007, all Scheduled Primary (Urban) Co-operative Banks will
be paid interest at the rate of 0.50 percent per annum on eligible cash balances
maintained with Reserve Bank of India under current CRR requirement. 4.
Please acknowledge receipt. Yours
faithfully, (A.K.Khound)
Chief
General Manager |