April 29, 2008
All Scheduled Commercial Banks
(excluding
Regional Rural Banks)
Dear Sir,
Section 42(1) of Reserve Bank of
India Act, 1934-Maintenance of CRR
Please refer to our
Circular
RBI/2007-2008/287 DBOD .No. Ret. BC.70 /12.01.001/ 2007-08 dated April 21, 2008
on the captioned subject. As set out in the Governor's Annual Policy statement
for the year 2008-09 issued on April 29, 2008, on a review of evolving liquidity
situation, it has been decided to increase Cash Reserve Ratio (CRR) for Scheduled
Commercial Banks from 8.00 per cent to 8.25 per cent of their net demand and time
liabilities with effect from the fortnight beginning May 24, 2008.
A
copy of the relative notification DBOD. No. Ret. BC. 78 /12.01.001/2007-2008
dated April 29, 2008 is enclosed.
Please acknowledge receipt.
Yours
faithfully
(Vinay Baijal)
Chief General Manager
DBOD.No.Ret.BC.
78 /12.01.001/2007-2008
April 29, 2008
NOTIFICATION
In exercise of the powers conferred under the sub-section (1)
of Section 42 of the Reserve Bank of India Act, 1934 and in partial modification
of its notification DBOD.No.Ret.BC.69/12.01.001/2007-08
dated April 21, 2008, the Reserve Bank of India hereby notifies that the average
Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Commercial
Bank shall be 8.25 per cent of its net demand and time liabilities from the fortnight
beginning from May 24, 2008.
(Anand Sinha)
Executive
Director