RBI/2008-09/214
Ref: DBOD.No.Ret.BC.55/12.01.001/2008-09
October 10, 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 DBOD. No. Ret. BC.52 /12.01.001/ 2008-09 dated October 6, 2008 on the captioned subject, advising reduction in Cash Reserve Ratio (CRR) by 50 basis points from 9.00 per cent to 8.50 per cent of net demand and time liabilities with effect from October 11, 2008.
- On a review of the evolving liquidity situation in the context of global and domestic developments, and as set out in the RBI Press Release 2008-2009/467 of date, it has been decided to reduce the CRR for Scheduled Commercial Banks by 150 basis points from 9.00 per cent to 7.50 per cent of their net demand and time liabilities (NDTL) instead of the 50 basis points (from 9.00 per cent to 8.50 per cent) reduction with effect from the fortnight beginning October 11, 2008.
- A copy of the relative notification DBOD. No. Ret. BC.54/12.01.001/2008-2009 dated October 10, 2008 is enclosed.
- Please acknowledge receipt.
Yours faithfully
(Vinay Baijal)
Chief General Manager
DBOD.No.Ret.BC.54/12.01.001/2008-2009
October 10, 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 supersession of the earlier notification DBOD.No.Ret.BC.51/12.01.001/2008-09 dated October 6, 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 reduced by 150 basis points to 7.50 per cent of its net demand and time liabilities from the fortnight beginning from October 11, 2008. (Anand Sinha) Executive Director