RBI/2008-09/214
Ref:
DBOD.No.Ret.BC.55/12.01.001/2008-09
October 10, 2008
All
Scheduled Commercial Banks
(excluding Regional Rural Banks)
Dear Sir,
Section
42(1) of Reserve Bank of India Act, 1934-Maintenance of CRR
Please
refer to our Circular
DBOD. No. Ret. BC.52 /12.01.001/ 2008-09 dated October 6, 2008 on the captioned
subject, advising reduction in Cash Reserve Ratio (CRR) by 50 basis points from
9.00 per cent to 8.50 per cent of net demand and time liabilities with effect
from October 11, 2008.
2. On a review of the evolving liquidity
situation in the context of global and domestic developments, and as set out in
the RBI Press Release 2008-2009/467 of date, it has been decided to reduce the
CRR for Scheduled Commercial Banks by 150 basis points from 9.00 per cent to 7.50
per cent of their net demand and time liabilities (NDTL) instead of the 50 basis
points (from 9.00 per cent to 8.50 per cent) reduction with effect from the fortnight
beginning October 11, 2008.
3. A copy of the relative notification
DBOD. No. Ret. BC.54/12.01.001/2008-2009 dated October 10, 2008
is enclosed.
4. Please acknowledge receipt.
Yours faithfully
(Vinay
Baijal)
Chief General Manager
DBOD.No.Ret.BC.54/12.01.001/2008-2009
October
10, 2008
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 supersession of the earlier notification
DBOD.No.Ret.BC.51/12.01.001/2008-09
dated October 6, 2008, the Reserve Bank of India hereby notifies that the
average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled
Commercial Bank shall be reduced by 150 basis points to 7.50 per cent of its net
demand and time liabilities from the fortnight beginning from October 11, 2008.
(Anand Sinha)
Executive Director