RBI/2006-2007/340
RPCD.CO.RF.BC.No.77/07.02.01/2006-07 April
24, 2007 All Scheduled State Co-operative Banks
Dear Sir, Maintenance
of Cash Reserve Ratio (CRR) on Exempted Categories
Please refer to our Circular RBI/2006-2007/277
RPCD.RF.BC.56/07.02.01/2006-07 dated March 02, 2007 on the captioned subject.
Consequent upon the notification of Section 3 of the Reserve Bank of India (Amendment)
Act, 2006 coming into force with effect from April 01,2007, the statutory minimum
CRR requirement of 3 per cent of total demand and time liabilities no longer exists.
It has been decided to modify the above circular accordingly, with effect
from April 01, 2007. Therefore, every Scheduled State Co-operative Bank shall
be exempted from maintaining average CRR with effect from April 01, 2007 on the
following liabilities as computed under Section 42 (1) of the Reserve Bank of
India Act, 1934. (i) Liabilities
to the banking system in India as computed under Clause (e) of the Explanation
to Section 42 (1) of the RBI Act, 1934; and (ii) Transactions
in Collateralized Borrowing and Lending Obligation (CBLO) with Clearing Corporation
of India Ltd. (CCIL). 2. A copy of the relative notification
RPCD.CO.RF.BC.No.76/07.02.01/2006-07
dated April 24, 2007 is enclosed. 3. Please acknowledge receipt to our
Regional Office concerned. Yours faithfully, (K.Bhattacharya)
General Manager |