Reserve Bank of India Act, 1934 – Section 42(1A) Withdrawal of the Incremental CRR

RBI/2016-17/174
DBR.No.Ret.BC.46/12.01.001/2016-17

December 7, 2016

The Chairperson / CEOs of all Scheduled Commercial Banks/ Regional Rural Banks / 
All Scheduled Primary (Urban) Co-operative Banks / All Scheduled State Co-operative Banks

Dear Sir,

Reserve Bank of India Act, 1934 – Section 42(1A)
Withdrawal of the Incremental CRR

Please refer to our circular DBR.No.Ret.BC.41/12.01.001/2016-17 dated November 26, 2016 whereby all scheduled banks were required to maintain, under Section 42(1A), incremental cash reserve ratio (CRR) of 100 per cent of the increase in NDTL between September 16, 2016 and November 11, 2016, effective the fortnight beginning November 26, 2016.

2. On a review, it has been decided to withdraw the requirement of incremental CRR, effective the fortnight beginning December 10, 2016.

3. A copy of the relative notification DBR.No.Ret.BC.45/12.01.001/2016-17 dated December 7, 2016 is enclosed.

Yours faithfully,

(S S Barik)
Chief General Manager-in-Charge

RBI/2016-17/
DBR.No.Ret.BC.45/12.01.001/2016-17

December 7, 2016

Notification

In exercise of the powers conferred by sub-section (1A) of Section 42 of the Reserve Bank of India Act, 1934, and in supersession of its notification DBR.No.Ret.BC.40/12.01.001/2016-17 dated November 26, 2016, the Reserve Bank of India hereby withdraws with effect from fortnight beginning December 10, 2016 the requirement by all Scheduled Commercial Banks/ Regional Rural Banks / all Scheduled Primary (Urban) Co-operative Banks / all Scheduled State Co-operative Banks, to maintain an incremental cash reserve ratio (CRR) of 100 per cent on increase in net demand and time liabilities (NDTL) between September 16, 2016 and November 11, 2016.

(Sudarshan Sen)
Executive Director