DBOD.No.BC.26/12.02.001/97-98
April 2, 1998
Chaitra 12, 1920 (Saka)
All Scheduled Commercial Banks
Dear Sir,
Penal Rate of Interest on the
shortfall in the maintenance of CRR/SLR
Please refer to our circular
DBOD. No. BC. 20/12.02.001/97-98 dated 18th March 1998 on the captioned
subject.
2. In this connection, we invite
your attention to Deputy Governor's circular No. MPD. BC. 174/07.01.279/97-98
dated 2nd April 1998 in terms of which the Bank Rate has been reduced by one
half of one percentage point i.e. from "10.50 percent per annum to 10.00
percent per annum" with effect from the close of business today (2nd April
1998). Consequently, the penal rate of interest charged on the amount of
shortfalls in the maintenance of Cash Reserve Ratio (CRR) and Statutory
Liquidity Ratio (SLR) which is linked to Bank Rate stands revised from the
close of business on 2nd April 1998.
Yours faithfully
(D.V. Jhaveri)
General Manager