Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of CRR – Circular No. RPCD.CO.RCB.BC.No.56/07.02.01/2011-12

RBI/2011-12/371
RPCD.CO.RCB.BC.No.56/07.02.01/2011-12

January 25, 2012

All Scheduled State Co-operative Banks / Regional Rural Banks

Dear Sir,

Section 42(1) of the Reserve Bank of India Act, 1934 – Maintenance of CRR

Please refer to our Circular RPCD.CO.RF.BC.No.75/07.02.01/2009-10 dated April 21, 2010 and RPCD.CO.RRB.No.73/03.05. 28(B)/2009-10 dated April 21, 2010 on the captioned subject.

2. The Reserve Bank in its Third Quarter Review of Monetary Policy 2011-12 issued on January 24, 2012, decided to reduce the Cash Reserve Ratio (CRR) of Scheduled State Co-operative Banks / Regional Rural Banks by 50 basis points from 6.00 per cent to 5.50 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning January 28, 2012.

3. A copy of the relative notification RPCD.CO.RCB.BC.No.55/07.02.01/2011-12 dated January 25, 2012 is enclosed.

4. Please acknowledge receipt to our Regional Office concerned.

Yours faithfully,

(C.D.Srinivasan)
Chief General Manager

Encl: one

RPCD.CO.RCB.BC.No 55/07.02.01/2011-12

January 25, 2012

NOTIFICATION

In exercise of the powers conferred under the sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 and in partial modification of the earlier notification RPCD.CO.RF.BC.No.74/07.02.01/2009-10 dated April 21, 2010 and RPCD.CO.RRB.No.72/03.05. 28(B)/2009-10 dated April 21, 2010, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled State Co-operative Bank / Regional Rural Bank shall be 5.50 per cent of its net demand and time liabilities from the fortnight beginning January 28, 2012.

(V.K.Sharma)
Executive Director

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