The Chairperson / CEOs of all
Scheduled Commercial Banks/ Regional Rural Banks /
All Scheduled Primary (Urban) Co-operative Banks / All Scheduled State
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.
(S S Barik)
Chief General Manager-in-Charge
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.