RBI Slashes CRR by 50bps

RBI/2011-12/363
Ref: DBOD.No.Ret.BC.74 /12.01.001/2011-12

January 24, 2012

All Scheduled Commercial Banks
(Excluding Regional Rural Banks)

Dear Sir,

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

Please refer to our Circular DBOD.No.Ret.BC.90/12.01.001/2009-10 dated April 20, 2010 on the captioned subject.

2.  The Reserve Bank in its Third Quarter Review of Monetary Policy 2011-12 issued on January 24, 2012, decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Commercial Banks by 50 basis points from 6.00 per cent to 5.50 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning January 28, 2012.

3.  A copy of the relative notification DBOD.No.Ret.BC.73 /12.01.001/2011-12 dated January 24, 2012 is enclosed.

4.   Please acknowledge receipt.

Yours faithfully

(P.R.Ravi Mohan)
Chief General Manager

Encls: one

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DBOD.No.Ret.BC.73 /12.01.001/2011-12

January 24, 2012

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 DBOD.No.Ret.BC.89/12.01.001/2009-10 dated April 20, 2010, 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 5.50 per cent of its net demand and time liabilities from the fortnight beginning January 28, 2012.

(B. Mahapatra)
Executive Director

Source: RBI