RBI/2023-24/59
DOR.RET.REC.34/12.01.001/2023-24 September 08, 2023 The Chairperson / CEOs of all Scheduled Commercial Banks / Regional Rural Banks / All Scheduled Primary (Urban) Co-operative Banks / All Scheduled State Co-operative Banks Madam / Dear Sir, Reserve Bank of India Act, 1934 - Section 42(1A) - Requirement for maintaining additional CRR Please refer to the circular DOR.RET.REC.29/12.01.001/2023-24 dated August 10, 2023 and relative notification on the captioned subject. 2. As announced in the RBI Press Release dated September 08, 2023, on a review, it has been decided to discontinue the incremental CRR (I-CRR) in a phased manner. Based on an assessment of current and evolving liquidity conditions, it has been decided that the amounts impounded under the I-CRR would be released in stages so that system liquidity is not subjected to sudden shocks and money markets function in an orderly manner. The release of funds would be as follows: | Date | Amount to be released | | September 09, 2023 | 25 per cent of the I-CRR maintained | | September 23, 2023 | 25 per cent of the I-CRR maintained | | October 07, 2023 | 50 per cent of the I-CRR maintained | 3. A copy of the relative notification DOR.RET.REC.35/12.01.001/2023-24 dated September 08, 2023 is enclosed. Yours faithfully, (Brij Raj)
Chief General Manager
DOR.RET.REC.35/12.01.001/2023-24 September 08, 2023 NOTIFICATION In exercise of the powers conferred by sub-section (1A) of Section 42 of the Reserve Bank of India Act, 1934 and in modification of the earlier notification DOR.RET.REC.30/12.01.001/2023-24 dated August 10, 2023, the Reserve Bank of India hereby directs that all Scheduled Commercial Banks / Regional Rural Banks / all Scheduled Primary (Urban) Co-operative Banks / all Scheduled State Co-operative Banks, shall maintain with the Reserve Bank of India, an additional average daily balance over and above the average daily balance required to be maintained under sub-section (1) of Section 42 during the following fortnights as under: | During the fortnight | Amount to be maintained | | September 09-22, 2023 | an additional average daily balance which shall not be less than 7.5 per cent of the increase in net demand and time liabilities between May 19, 2023 and July 28, 2023 | | September 23, 2023 - October 06, 2023 | an additional average daily balance which shall not be less than 5.0 per cent of the increase in net demand and time liabilities between May 19, 2023 and July 28, 2023 | | From October 07, 2023 | Nil | (Jayant Kumar Dash)
Executive Director |