Notifications

RPCD.RF.BC.No.34/07.02.05/2002-03

29 October 2002
07 Kartika 1924(Saka)

All Scheduled State Co-operative Banks/
Regional Rural Banks

Dear Sir

Please refer to our circular RPCD.RF.BC.No.93A/07.02.05/2001-02 dated May 18, 2002 advising reduction of CRR for Scheduled State Co-operative Banks and Regional Rural Banks from 5.5 per cent to 5.0 per cent effective from the fortnight beginning from June 1, 2002.

2. It has been decided to reduce CRR by 0.25 percentage point from 5.0 per cent to 4.75 per cent effective from the fortnight beginning November 16, 2002. A copy of the notification in this regard is enclosed.

3. All other instructions communicated in our earlier circulars remain unchanged.

4. The contents of this circular may please be brought to the notice of the Board of your bank.

5. Kindly acknowledge receipt of this circular to our respective Regional Office.

Yours faithfully

Sd/-

RPCD.No. 417 /07.02.05/2002-03

October 29,2002.

In exercise of the powers conferred by the proviso to Sub-Section (1) of Section 42 of Reserve Bank of India Act, 1934 (2 of 1934) and in modification of notifications RPCD.No.613A/07.02.05/2001-02 and RPCD.No.613B/ 07.02.05/2001-02 dated May 18, 2002 respectively, the Reserve Bank of India hereby directs that the Cash Reserve Ratio (CRR) required to be maintained by Scheduled State Co-operative Banks and Regional Rural Banks shall be reduced by 0.25 percentage point from 5.0 per cent to 4.75 per cent effective from the fortnight beginning November 16, 2002.

However, the effective CRR maintained by all Scheduled State Co-operative Banks and Regional Rural Banks on total demand and time liabilities shall not be less than 3.0 per cent, as stipulated under the Act, ibid.

Sd/-

RPCD.RF.BC.33 /07.02.01/2002-03

October 29, 2002
Kartika 7, 1924 (Saka)

Dear Sir,

Please refer to our circular RPCD.RF.BC.No.35/07.02.01/2001-02 dated October 22, 2001 on the above subject advising, inter alia, reduction in the Bank Rate from 7 per cent per annum to 6.5 per cent.

2. Consequent upon further reduction in the Bank Rate by 0.25 percentage point i.e. from 6.50 per cent per annum to 6.25 per cent with effect from the close of business on October 29, 2002, the penal interest charged on the amount of shortfalls in the maintenance of Cash Reserve Ratio which is linked to Bank Rate, stands revised from the close of business on October 29, 2002 as under:

Bank Rate plus 3 percentage points (9.25) or
Bank Rate plus 5 percentage points (11.25)
depending upon the duration of the shortfall.

Yours faithfully,

Sd/-