**Policy Summary: Extension of Relaxed Cash Reserve Ratio (CRR) Maintenance**
This circular, DOR.No.Ret.BC.7812.01.001/2019-20 dated June 26, 2020, issued by the Reserve Bank of India (RBI), announces an extension to the relaxation of minimum daily maintenance of the Cash Reserve Ratio (CRR) for all scheduled banks. Further to the circular DOR.No.Ret.BC.51/12.01.001/2019-20 dated March 27, 2020, the RBI has decided to extend the reduced minimum daily CRR maintenance requirement of 80% of the prescribed CRR for an additional three months, up to September 25, 2020. This measure, initially implemented effective the fortnight beginning March 28, 2020 and set to expire on June 26, 2020, is being extended to alleviate hardships faced by banks due to social distancing measures, staffing constraints, and resultant reporting strains. For further information, contact Dr. S. K. Kar, Chief General Manager, Department of Regulation, Central Office, Reserve Bank of India, 5th floor, Amar Building, Sir P.M. Road, Fort, Mumbai 400001, Tel No: 22603000.
Key Entities Referenced
Reserve Bank of India: The central bank of India, responsible for monetary policy and regulation of the banking system.
Reserve Bank of India Act, 1934: An act of the Parliament 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.
All Scheduled Banks: All banks in India which are listed in the Second Schedule to the Reserve Bank of India Act, 1934.
Mumbai, Maharashtra: A city in Maharashtra, the location of the Central Office of the Department of Regulation of the Reserve Bank of India.
Statement of Developmental and Regulatory Policies: A statement issued by the Reserve Bank of India outlining its policies related to development and regulation.
Dr. S K Kar: Chief General Manager at the Reserve Bank of India.
Department of Regulation, Central Office: A department within the Reserve Bank of India located in Mumbai.
भारतीय �रज़व र् बक�
______________________RESERVE BANK OF INDIA ______________________
www.rbi.org.in
RBI/2019-20/260
DOR.No.Ret.BC.78/12.01.001/2019-20 June 26, 2020
All Scheduled Banks
Dear Sir / Madam
Section 42(1) of the Reserve Bank of India Act, 1934 - Change in Minimum Daily
Maintenance of the Cash Reserve Requirement
Please refer to our circular DOR.No.Ret.BC.51/12.01.001/2019-20 dated March 27, 2020 on
the captioned subject.
2. As announced in the Statement of Developmental and Regulatory Policies of March 27,
2020, the minimum daily maintenance of the Cash Reserve Ratio (CRR) was reduced from
90 per cent of the prescribed CRR to 80 per cent effective the fortnight beginning March 28,
2020 till June 26, 2020.
3. Keeping in view the continuing of hardships faced by banks in terms of social distancing of
staff and consequent strains on reporting requirements, it has now been decided to extend
the relaxation of the minimum daily maintenance of the Cash Reserve Ratio of 80 per cent
for a further period of three months, i.e., up to September 25, 2020.
Yours faithfully
(Dr. S K Kar)
Chief General Manager
___________________________________________________________________________________________________________________
िविनयमन िवभाग, क�द्रीय काया�लय, 5वी ं मंिजल, अमर भवन, सर पी एम रोड, फोट�, मुंबई 400001
टेलीफ़ोन /Tel No: 22603000
Department of Regulation, Central Office, 5th floor, Amar Building, Sir P.M. Road, Fort, Mumbai – 400001.
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