The Reserve Bank of India (RBI) on August 10, 2023, issued a notification regarding the Requirement for maintaining additional CRR under Section 42(1A) of the Reserve Bank of India Act, 1934
The following has been stated namely: -
• It states that the Scheduled Banks are required to maintain with the Reserve Bank of India a Cash Reserve Ratio (CRR) of 4.50 percent of Net Demand and Time Liabilities as per Section 42(1A) of the Reserve Bank of India Act, 1934
• It further directs that all Scheduled Commercial Banks / Regional Rural Banks / All Scheduled Primary (Urban) Co-operative Banks / All Scheduled State Co-operative Banks, shall maintain with the Reserve Bank of India, with effect from the fortnight beginning August 12, 2023:
i. an additional average daily balance over and above the average daily balance required to be maintained under sub-section (1) of Section 42; and
ii. that the amount of such additional average daily balance shall not be less than 10 percent of the increase in net demand and time liabilities between May 19, 2023, and July 28, 2023.
• It states that the I-CRR will be reviewed on September 08, 2023, or earlier.
[Notification No. RBI/2023-24/52 DOR.RET.REC.29/12.01.001/2023-24]
