RBI/2018-19/38
DCBR.BPD.(PCB/RCB).Cir.No.3/16.27.000/2018-19
August
16, 2018
The Chief Executive Officers of
All Scheduled Primary (Urban) Co-operative Banks/
All Scheduled State Co-operative Banks
Madam / Dear Sir,
Introduction of Liquidity
Adjustment Facility (LAF) and Marginal Standing Facility (MSF) for
Scheduled Co-operative Banks
Please refer to our circular UBD.BPD.(SCB).Cir.No.1/16.27.000/2014-15 dated
October 29, 2014 regarding Introduction of Liquidity Adjustment
Facility (LAF) for Scheduled Primary (Urban) Co-operative Banks (UCBs).
2. In this connection, it has
been decided that with effect from August 20, 2018, LAF will also be
extended to Scheduled State Co-operative Banks (StCBs) which are CBS
enabled and have CRAR of at least 9 percent.
3. Further, in order to provide
an additional window for liquidity management over and above what is
available under LAF, it has also been decided that with effect from August
20, 2018, Marginal Standing Facility (MSF) will be extended to Scheduled
UCBs and Scheduled StCBs which are CBS enabled and have CRAR of at least 9
percent.
4. The terms and conditions for
availing LAF and MSF would be as per the instructions issued by Financial
Markets Operation Department (FMOD) of the Reserve Bank of India from time
to time.
5. The names of such Scheduled
Co-operative Banks which meet the eligibility norms to participate in LAF
and MSF (Positive List), and of those Scheduled Co-operative Banks found
ineligible (Negative List) will be communicated shortly to the FMOD by
Department of Co-operative Bank Regulation (DCBR) under intimation to the
banks concerned.
6. The eligibility status of the
banks in the Positive List will be reviewed on an ongoing basis to ensure
that the CRAR requirement is being complied with.
Yours faithfully,
(Neeraj Nigam)
Chief General Manager
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