October 30, 2007

All Scheduled State Co-operative Banks

Dear Sir,

Section 42(1) of Reserve Bank of India Act, 1934-Maintenance of Cash Reserve Ratio (CRR)

Please refer to our Circular RBI/2007-2008/108 RPCD.CO.RF.BC.No.15/ 07.02.01/2007-08 dated August 1, 2007 on the captioned subject. On a review of the current liquidity situation, it has been decided to increase cash reserve ratio (CRR) of Scheduled State Co-operative Banks by 50 basis points to 7.50 per cent of their demand and time liabilities with effect from the fortnight beginning November 10, 2007.

2. A copy of the relative notification RPCD.CO.RF.BC.No.33/07.02.01/2007-08 dated October 30, 2007 is enclosed.

3. Please acknowledge receipt to our Regional Office concerned.

Yours faithfully,

(K.Bhattacharya)
General Manager

RPCD.CO.RF.BC.No.33/07.02.01/2007-08

October 30, 2007

In exercise of the powers conferred under the amended sub-section (1) of Section 42 of the Reserve Bank of India Act, 1934 and in partial modification of the notification RPCD.CO.RF.BC.No.14/07.02.01/2007-08 dated August 1, 2007, the Reserve Bank of India hereby notifies that every Scheduled State Co-operative bank should maintain a Cash Reserve Ratio of 7.50 per cent of its demand and time liabilities from the fortnight beginning November 10, 2007.