RBI/2006-2007/347
Ref: UBD
(PCB) Cir.No./6/12.03.000/2006-07 April
25, 2007 The Chief Executive Officers of
All Scheduled Primary (Urban)
Co-operative Banks
Dear Sir/Madam, Maintenance of Cash Reserve
Ratio (CRR) on Exempted Categories Please refer to our Circular
RBI/2006-07/272
UBD (PCB) Cir. No. 4/12.03.000/2006-07 dated March 01, 2007 on the captioned
subject. Consequent upon the notification of Section 3 of the Reserve Bank of
India (Amendment) Act, 2006, as coming into force with effect from April 01, 2007,
the statutory minimum Cash Reserve Ratio (CRR) requirement of 3 per cent of the
total demand and time liabilities no longer exists. It has been decided to modify
the above circular accordingly, with effect from April 01, 2007. Therefore, every
Scheduled Primary (Urban) Co-operative Bank shall be exempted from maintaining
average CRR with effect from April 01, 2007 on the following liabilities as computed
under section 42 (1) of the Reserve Bank of India Act, 1934.
i. Liabilities
to the banking system in India as computed under Clause (d) of the explanation
to Section 42 (1) of the RBI Act, 1934; andii. Transactions
in Collateralized Borrowing and Lending Obligation (CBLO) with Clearing Corporation
of India Ltd.(CCIL) 2. A copy of the relative notification UBD
(PCB). No./6/12.03.000/2006-2007 dated April 24, 2007 is enclosed.
3. Please acknowledge receipt.
Yours
faithfully, (N.S.Viswanathan)
Chief General Manager in-Charge |