DBOD.No.BC. 44/12.01.001/97-98

May 20, 1998

Vaishukha 30, 1920 (Saka)

All Scheduled Commercial Banks

(excluding Regional Rural Banks)

Dear Sir,

Release of balances impounded between 3 may 1991 and 17 april 1992 under 10 per cent incremental crr

Please refer to the Deputy Governor's circular MPD. 176/07.01.279/97-98 dated 18th May 1998 on the captioned subject.

2. In this connection we invite a reference of para 2(b) of our circular DBOD. No. BC. 38/12.01.001/92 dated 8th October 1992 in terms of which one-third of the additional cash balances maintained under the 10 per cent incremental CRR by each bank was released. It has now been decided to release the remaining two thirds of additional cash balances maintained under the 10 per cent incremental CRR by each bank based on the level of Net Demand and Time Liabilities upto April 17, 1992 in 12 equal instalments as per the schedule given in the Annexure. A copy of the relative notification DBOD. No. BC. 43/12.01.001/92 dated 20th May 1998 is enclosed.

3. Please note that other prescriptions of incremental Cash Reserve Ratio under section 42(1A) of the Reserve Bank of India Act, 1934 would continue till further advice.

Yours faithfully

(N. K. Sarkar)

General Manager