UBD.BPD. (SCB). CIR. No. 1 /12.03.000/2013-14
July 24, 2013
The Chief Executive Officers of
All Scheduled Primary (Urban) Co-operative Banks
Section 42(1) of the Reserve Bank of India Act, 1934 – Change in
Daily Minimum Cash Reserve Maintenance Requirement
Please refer to Press Release 2013-2014/154 dated July 23, 2013, announcing additional measures to address foreign exchange market volatility.
2. As mentioned therein, currently, banks are allowed to maintain a minimum of 70 per cent of the required Cash Reserve Ratio (CRR) during a fortnight, which is applicable on all days of the reporting fortnight. It has now been decided to increase the requirement of minimum daily CRR balance maintenance to 99 per cent effective from the first day of the fortnight beginning July 27, 2013.
Principal Chief General Manager
For Press Release 2013-2014/154 dated July 23, 2013
RBI announces Additional measures to address Exchange Market Volatility
Over the last two months, the Reserve Bank of India (RBI) has undertaken several measures to contain the volatility in the foreign exchange market. Among them, some measures intended to check excessive speculation adding to undue volatility in market conditions were instituted vide the RBI's Press Release No.2013-2014/100 dated July 15, 2013. These measures have had a restraining effect on volatility with a concomitant stabilising effect on the exchange rate. Based on a review of the measures, and an assessment of the liquidity and overall market conditions going forward, it has been decided to modify the liquidity tightening measures as follows:
Detailed guidelines regarding these measures are being issued separately.
Chief General Manager