**Policy Summary: Reduction in Cash Reserve Ratio (CRR)**
This notification, issued by the Reserve Bank of India (RBI) on March 27, 2020, announces a reduction in the Cash Reserve Ratio (CRR) for all banks. Effective from the reporting fortnight beginning March 28, 2020, the CRR is reduced by 100 basis points, from 4.00 percent to 3.00 percent of banks' Net Demand and Time Liabilities (NDTL). This measure is valid for a period of one year, concluding on March 26, 2021. The decision was made as announced in the Seventh Bimonthly Monetary Policy Statement, 2019-20. The notification is issued in exercise of the powers conferred under subsection 1 of Section 42 of the Reserve Bank Act, 1934 and subsection 1 of Section 18 of the Banking Regulation Act, 1949 (10 of 1949), and in partial modification of earlier notifications DBOD.No.Ret.BC.75/12.01.001/2012-13, DBOD.No.Ret.BC.79/12.01.001/2012-13 and RPCD.CO.RCB.RRB.BC.No.60/03.05.33/2012-13 all dated January 29, 2013.
For further information, contact Dr. S. K. Kar, Chief General Manager, Department of Regulation, Central Office, 5th floor, Amar Building, Sir P.M. Road, Fort, Mumbai – 400001. Tel No: 22661602/2260100. Fax No.: 022-22705691. Contact person is Lily Vadera, Executive Director.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy.
Cash Reserve Ratio (CRR): The percentage of a bank's total deposits that it is required to maintain with the Reserve Bank of India.
Net Demand and Time Liabilities (NDTL): The difference between the sum of demand and time liabilities (deposits) of a bank and its interbank assets.
Reserve Bank Act, 1934: An act of the Parliament of India that governs the statutory framework of the Reserve Bank of India.
Banking Regulation Act, 1949: A law in India that regulates the banking companies.
Mumbai, Maharashtra: The city in which the Central Office of the Department of Regulation, Reserve Bank of India is located.
Dr. S K Kar: Chief General Manager at Reserve Bank of India.
Lily Vadera: Executive Director
भारतीय �रज़व र् बक�
_________________RESERVE BANK OF INDIA ___________________
www.rbi.org.in
RBI/2019-20/191
DOR.No.Ret.BC.49/12.01.001/2019-20 March 27, 2020
All Banks
Dear Sir / Madam
Maintenance of Cash Reserve Ratio (CRR)
Please refer to our Circular DBOD.No.Ret.BC.76/12.01.001/2012-13 dated
January 29, 2013 and Circular RPCD.CO.RCB.RRB.BC.No.61/03.05.33/2012-13
dated January 29, 2013 on the captioned subject.
2. As announced in the Seventh Bi-monthly Monetary Policy Statement, 2019-20,
March 27, 2020, it has been decided to reduce the Cash Reserve Ratio (CRR) of
all banks by 100 basis points from 4.00 per cent to 3.00 per cent of their Net
Demand and Time Liabilities (NDTL) with effect from the reporting fortnight
beginning March 28, 2020 for a period of one year, ending on March 26, 2021.
3. A copy of the relative notification DOR.No.Ret.BC.50/12.01.001/2019-20
dated March 27, 2020 is enclosed.
4. Please acknowledge receipt.
Yours faithfully
(Dr. S K Kar)
Chief General Manager
Encls: as above
िविनयमन िवभाग, क�द्रीय काया�लय, 5वी ं मंिजल, अमर भवन, सर पी एम रोड, फोट�, मुंबई 400001
___________________________________________________________________________________________________________________
टेलीफ़ोन /Tel No: 22661602/2260100 फै� / Fax No.: 022-22705691
Department of Regulation, Central Office, 5th floor, Amar Building, Sir P.M. Road, Fort, Mumbai – 400001.
िह �ी आसान है, इस का प्रयोग बढ ाइयेDOR.No.Ret.BC.50/12.01.001/2019-20 March 27, 2020
Notification
2. In exercise of the powers conferred under the sub-section (1) of Section 42 of the
Reserve Bank Act, 1934 and sub-section (1) of Section 18 of the Banking
Regulation Act, 1949 (10 of 1949), and in partial modification of the earlier
notifications DBOD.No.Ret.BC.75/12.01.001/2012-13 dated January 29, 2013,
DBOD.No.Ret.BC.79/12.01.001/2012-13 dated January 29, 2013 and
RPCD.CO.RCB.RRB.BC.No.60/03.05.33/2012-13 dated January 29, 2013, the
Reserve Bank of India hereby notifies that the average Cash Reserve Ratio
(CRR) required to be maintained by every Bank shall be 3.00 per cent of its net
demand and time liabilities from the fortnight beginning March 28, 2020 for a
period of one year, ending on March 26, 2021.
(Lily Vadera)
Executive
Director