Financial Daily from THE HINDU group of publications
Wednesday, Sep 15, 2004
Financial Daily from THE HINDU group of publications Wednesday, Sep 15, 2004 |
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Money & Banking
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CRR & Bank Rates RBI raises CRR of urban co-ops by 50 basis points Our Bureau
Mumbai , Sept. 14 THE Reserve Bank of India has raised the cash reserve ratio of urban co-operative banks by 50 basis points from the current level of 4.50 per cent. The hike in CRR will be effected in two stages. From the fortnight beginning September 18, CRR of UCBs will be 4.75 per cent and to five per cent from the fortnight beginning October 2. In a circular to the chiefs of all UCBs, the apex bank has said that the move follows a review of the current liquidity conditions in the system. However, the effective CRR maintained by scheduled primary UCBs on total demand and time liabilities shall not be less than three per cent, as stipulated under the Reserve Bank of India Act, 1934 the bank said. The RBI also said that with effect from the fortnight beginning September 18, the scheduled primary UCBs will be paid interest at the rate of 3.5 per cent per annum on eligible cash balances maintained with the apex bank under CRR requirement. Currently, these banks are paid interest at the bank rate on eligible cash balances.
More Stories on : CRR & Bank Rates | Co-operatives
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