Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of CRR

Last updated: 01 February 2013

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RBI/2012-13/406
RPCD.CO.RCB.RRB.BC.No. 61/03.05.33/2012-13

January 29, 2013

All Scheduled State Co-operative Banks / Regional Rural Banks

Dear Sir,

Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of CRR

Please refer to our Circular RPCD.CO.RCB.RRB.BC.No.39/03.05.33/2012-13 dated October 30, 2012, on the captioned subject.

2. As set out in the Reserve Bank’s Press Release 2012-2013/1267 dated January 29, 2013, it has been decided to reduce the Cash Reserve Ratio (CRR) of Scheduled State Co-operative Banks / Regional Rural Banks, by 25 basis points, from 4.25 per cent to 4.00 per cent, of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning February 9, 2013.

3. A copy of the relative notification RPCD.CO.RCB.RRB.BC.No.60/ 03.05.33/2012-13 dated January 29, 2013, is enclosed.

4. Please acknowledge receipt to our Regional Office concerned.

Yours faithfully,

(C.D.Srinivasan)
Chief General Manager

Encl: one

RPCD.CO.RCB.RRB.BC.No. 60/03.05.33/2012-13

January 29, 2013

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 the earlier notification RPCD.CO.RCB.RRB.BC.No.38/03.05.33/2012-13 dated October 30, 2012, the Reserve Bank of India hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled State Co-operative Bank / Regional Rural Bank shall be 4.00 per cent of its net demand and time liabilities from the fortnight beginning February 9, 2013.

Dr. (Smt.) Deepali Pant Joshi
Executive Director