DBOD.No. Dir.BC.20/12.02.001/97-98
March 18, 1998
Phalguna 27, 1919 (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. 6/12.02.001/97-98 dated 16th January 1998 on the captioned subject.
2. In this connection, we invite
your attention to Deputy Governor's circular No. MPD. BC. 172/07.01.279/97-98
dated 18th March 1998 in terms of which the Bank Rate has been reduced by one
half of one percentage point i.e. from "11.00 percent per annum" to
"10.5 percent per annum" with effect from the close of business today
(18th March 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 18th March 1998.
Yours faithfully
(D.V. Jhaveri)
General Manager