DBOD BC No. 60 / 12.01.001 /2000-01

27.12.2000

Dear Sir,

Section 42 of Reserve Bank of India Act, 1934 - Cash Reserve Ratio (CRR)-
Maintenance of minimum level of 65 per cent on a daily basis.

As per the extant instructions the banks are required to maintain a minimum level of 65.0 per cent of the CRR balances required to be maintained by banks on each of the days of the reporting fortnight beginning the first working day upto 13^th day and on the 14^th day of the reporting fortnight , banks are allowed to maintain less than 65 per cent of the required cash balances to adjust the average of daily balances to the required level.

As December 30, 2000 happens to be Bank's Half Yearly closing day, the banks will not be in a position to transact any business with RBI on that day. Therefore, as a special case , it has been decided to allow the banks to treat the balances as on 29.12.2000 as their CRR balances for 30.12.2000 and allow them to maintain less than 65.0 per cent on 30.12.2000 and 31.12.2000.

Yours faithfully,

(R.C.Mittal)
General Manager.