RPCD.CO RCB. BC No.20/03.03.02/2011-12
September 30, 2011
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Advances to State Co-operative Banks under Section I7 (4) (a) of the RBI Act, 1934 for general banking business
As you are aware, the interest on loans and advances granted by the Reserve Bank to State Co-operative Banks under Section 17 (4) (a) of the RBI Act, 1934 for the purpose of general banking business such as clearing adjustments, liquidity etc. is provided at Bank Rate in terms of our circular RPCD No. NB. BC.93/03.03.02/98-99 dated April 20, 1999.
2. It has now been decided that, henceforth, such accommodation will be provided to State Co-operative Banks at the repo rate.
(I. S. Negi)