**Policy Summary: Incremental Cash Reserve Ratio (ICRR) Implementation**
This document, issued by the Reserve Bank of India (RBI) on August 10, 2023, announces the implementation of an Incremental Cash Reserve Ratio (ICRR). Under Section 42(1A) of the Reserve Bank of India Act, 1934, all Scheduled Commercial Banks, Regional Rural Banks, Scheduled Primary Urban Cooperative Banks, and Scheduled State Cooperative Banks are directed to maintain an ICRR of 10% on the increase in Net Demand and Time Liabilities (NDTL) between May 19, 2023, and July 28, 2023. This ICRR is in addition to the existing Cash Reserve Ratio (CRR) of 4.50% of NDTL as mandated by Section 42(1) of the same Act. The ICRR requirement takes effect from the fortnight beginning August 12, 2023, and will be reviewed on September 8, 2023, or earlier. The notification number for this directive is DOR.RET.REC.3012.01.001/2023-24. For further information, contact Brij Raj, Chief General Manager, Department of Regulation, Central Office, Reserve Bank of India, 12th/13th Floor, Central Office Building, Shaheed Bhagat Singh Marg, Mumbai – 400001. Tel No: 22601000, Fax No: 022-2270 5670, 2260 5671, 2270 5691, 2260 5692.
Key Entities Referenced
Reserve Bank of India: The central bank of India, also referred to as RBI.
Reserve Bank of India Act, 1934: An act of the Parliament of India that governs the Reserve Bank of India.
Scheduled Commercial Banks: Banks in India that are listed in the Second Schedule to the Reserve Bank of India Act, 1934.
Regional Rural Banks: Government-sponsored regional banks in India.
Scheduled Primary Urban Cooperative Banks: Cooperative banks operating in urban areas in India, which are included in the Second Schedule to the Reserve Bank of India Act, 1934.
Scheduled State Cooperative Banks: Cooperative banks at the state level in India, which are included in the Second Schedule to the Reserve Bank of India Act, 1934.
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 of a bank and its assets with the banking system.
भारतीय �र ज़व� ब�क
RESERVE BANK OF INDIA
www.rbi.org.in
RBI/2023-24/52
DOR.RET.REC.29/12.01.001/2023-24 August 10, 2023
The Chairperson / CEOs of all Scheduled Commercial Banks / Regional Rural Banks /
All Scheduled Primary (Urban) Co-operative Banks / All Scheduled State Co-operative Banks
Madam / Dear Sir,
Reserve Bank of India Act, 1934 - Section 42(1A) - Requirement for maintaining additional CRR
Under Section 42(1) of the Reserve Bank of India Act, 1934, all Scheduled Banks are required to
maintain with Reserve Bank of India a Cash Reserve Ratio (CRR) of 4.50 per cent of Net Demand
and Time Liabilities (NDTL).
2. On a review of the current liquidity conditions, it has been decided to issue a directive under Section
42(1A) of the Reserve Bank of India Act, 1934 requiring all Scheduled Commercial Banks / Regional
Rural Banks / all Scheduled Primary (Urban) Co-operative Banks / all Scheduled State Co-operative
Banks to maintain with the Reserve Bank of India, effective from the fortnight beginning August 12,
2023, an incremental CRR (I-CRR) of 10 per cent on the increase in NDTL between May 19, 2023
and July 28, 2023. The I-CRR will be reviewed on September 8, 2023 or earlier.
3. A copy of the relative notification DOR.RET.REC.30/12.01.001/2023-24 dated August 10, 2023
is enclosed.
Yours faithfully,
(Brij Raj)
Chief General Manager
िविनयमन िवभाग, क�द्रीय काया�लय, 12वी ंऔर 13वी ंमंिज़ल, क�द्रीय काया�लय भवन, शहीद भगत िसंह माग�, मुंबई 400001
टेलीफोन /Tel No: 22601000 फै�/ Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692
Department of Regulation, Central Office, 12th & 13th Floor, Central Office Building, Shaheed Bhagat Singh Marg, Mumbai – 400001
Tel No: 22601000 Fax No: 022-2270 5670, 2260 5671, 5691 2270, 2260 5692
ब�क िहंदी म� पत्राचार का �ागत करता है
Caution: RBI never sends mails, SMSs or makes calls asking for personal information like bank account details, passwords, etc. It never keeps or
offers funds to anyone. Please do not respond in any manner to such offers.DOR.RET.REC.30/12.01.001/2023-24 August 10, 2023
NOTIFICATION
In exercise of the powers conferred by sub-section (1A) of Section 42 of the Reserve Bank of India
Act, 1934, the Reserve Bank of India hereby 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 per cent of
the increase in net demand and time liabilities between May 19, 2023 and July 28, 2023.
(Jayant Kumar Dash)
Executive Director