RBI Cuts CRR by 25 bps to 4.25%

Maintenance of Cash Reserve Ratio

RBI/2012-13/269 Ref: DBOD.No.Ret.BC.52/12.01.001/2012-13 October 30, 2012 All Scheduled Commercial Banks (Excluding Regional Rural Banks) Dear Sir, Section 42(1) of the Reserve Bank of India Act, 1934 - Maintenance of Cash Reserve Ratio (CRR) Please refer to our Circular DBOD.No.Ret.BC.44/12.01.001/2012-13 dated September 17, 2012 on the captioned subject. 2. As set out in the Reserve Bank's Press Release 2012-2013/ 713 dated October 30, 2012, it has been decided to reduce the Cash Reserve Ratio (CRR) of Scheduled Commercial Banks by 25 basis points from 4.50 per cent to 4.25 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the fortnight beginning November 03, 2012. 3. A copy of the relative notification DBOD.No.Ret.BC.51/12.01.001/2012-13 dated October 30, 2012 is enclosed. 4. Please acknowledge receipt. Yours faithfully (Murli Radhakrishnan) Chief General Manager Encls: one DBOD.No.Ret.BC. 51/12.01.001/2012-13 October 30, 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.43/12.01.001/2012-13 dated September 17, 2012, the Reserve Bank hereby notifies that the average Cash Reserve Ratio (CRR) required to be maintained by every Scheduled Commercial Bank shall be 4.25 per cent of its net demand and time liabilities from the fortnight beginning November 03, 2012. (B. Mahapatra) Executive Director