**Policy Summary:**
This circular, RBI201516359 DBR.No.Ret.BC.91 / 12.01.001/2015-16, issued by the Reserve Bank of India (RBI) on April 5, 2016, announces a change in the daily minimum Cash Reserve Ratio (CRR) maintenance requirement. Effective from the fortnight beginning April 16, 2016, the minimum daily maintenance of the CRR is reduced from 95 percent to 90 percent of the required amount. This decision was announced in the First Bi-Monthly Monetary Policy Statement 2016-17 dated April 5, 2016. The circular is addressed to the Chairpersons and CEOs of all Scheduled Commercial Banks, Regional Rural Banks, Scheduled Primary Urban Cooperative Banks, and Scheduled State Cooperative Banks. It references previous circulars DBOD.No.Ret.BC.55/12.01.001/2013-14, UBD.BPD.SCB.CIRNo.2/12.03.000/2013-14, and RPCD.CO.RRB.RCB.No. 4003/03.05.33/2013-14, all dated September 20, 2013, on the same subject. For further information, contact S.S. Barik, Chief General Manager, Department of Banking Operations and Development, Central Office, Centre 1, Cuffe Parade, Colaba, Mumbai – 400005. Tel No: 91-22-22189131, Fax No: 91-22-22160970, Email ID: cgmicdbodcorbi.org.in.
Key Entities Referenced
Reserve Bank of India Act, 1934: A legislative act of India that established the Reserve Bank of India.
Cash Reserve Ratio: The percentage of a bank's total deposits that it is required to keep with the Reserve Bank of India.
Mumbai, Maharashtra: The city in India where the Central Office of the Department of Banking Operations and Development of RBI is located.
Scheduled Commercial Banks: Banks in India that are listed in the Second Schedule to the Reserve Bank of India Act, 1934.
Regional Rural Banks: Rural banks in India with a mandate to provide credit and other facilities to small farmers, agricultural labourers and artisans in rural areas.
Scheduled Primary Urban Cooperative Banks: Cooperative banks in urban areas of India that 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 that are included in the Second Schedule to the Reserve Bank of India Act, 1934.
First BiMonthly Monetary Policy Statement 201617: Monetary policy statement released by Reserve Bank of India.
RBI/2015-16/359
DBR.No.Ret.BC.91 /12.01.001/2015-16 April 5, 2016
The Chairperson /CEOs of all Scheduled Commercial Banks/ Regional Rural Banks /
All Scheduled Primary (Urban) Co-operative Banks / All Scheduled State
Co-operative Banks
Dear Sir / Madam,
Section 42(1) of the Reserve Bank of India Act, 1934 - Change in
Daily Minimum Cash Reserve Maintenance Requirement
Please refer to our Circular DBOD.No.Ret.BC.55/12.01.001/2013-14;
UBD.BPD.(SCB).CIRNo.2/12.03.000/2013-14 and RPCD.CO.RRB.RCB.No.
40/03.05.33/ 2013-14 all dated September 20, 2013 on the captioned subject.
2. As announced in the First Bi-Monthly Monetary Policy Statement 2016-17 dated
April 5, 2016, it has been decided to reduce the minimum daily maintenance of the
Cash Reserve Ratio from 95 per cent of the requirement to 90 per cent effective from
the fortnight beginning April 16, 2016.
Yours faithfully,
(S.S.Barik)
Chief General Manager
ब��कंग �व�नयमन �वभाग, क�द्र�य कायार्लय, �वश् व व् यापार क�द्र, स�टर-1, कफ परेड, मुंबई 400005
____________________________________________________________________________________________
Department of Banking Operations and Development, Central Office, Centre 1, Cuffe Parade, Colaba, Mumbai -
400005
Tel No: 91-22-22189131/Fax No: 91-22-22160970 Email ID:cgmicdbodco@rbi.org.in