RBI/2008-09/254
Ref:
DBOD.No.Ret.BC.71/12.01.001/2008-09 November
03, 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.61 /12.01.001/ 2008-09 dated October 15, 2008 on the captioned
subject. 2. On a review of the current and evolving macroeconomic
situation and liquidity conditions in the global and domestic financial markets,
and as set out in the RBI
Press Release 2008-2009/603 dated November 01, 2008, it has been decided to
reduce the Cash Reserve Ratio (CRR) for Scheduled Commercial Banks by 100 basis
points from 6.50 per cent to 5.50 per cent of their net demand and time liabilities
(NDTL) in two stages, effective from fortnights as indicated below:
| Effective
date (i.e., the
fortnight beginning from) |
CRR on net demand and time
liabilities
(per cent) | | October
25, 2008 | 6.00 |
| November
8, 2008 | 5.50 |
3. A copy of
the relative notification DBOD. No. Ret. BC.70 /12.01.001/2008-2009
dated November 03, 2008 is enclosed.
4. Please acknowledge receipt. Yours
faithfully (P. K. Mahapatra)
General Manager
DBOD.No.Ret.BC.70
/12.01.001/2008-2009 November 03, 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 partial modification
of the earlier notification DBOD.No.Ret.BC.60/12.01.001/2008-09
dated October 15, 2008, the Reserve Bank of India hereby notifies that the
average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled
Commercial Bank of its net demand and time liabilities shall, from effective dates
mentioned below, be at the percentage points as indicated thereagainst
| Effective
date (i.e., the
fortnight beginning from) |
CRR on net demand and time
liabilities
(per cent) | | October
25, 2008 | 6.00 |
| November
8, 2008 | 5.50 |
(Anand Sinha)
Executive Director |