Maintenance of Additional CRR Under Section 42(1a) of RBI Act, 1934

The Reserve Bank of India has instructed all Scheduled Commercial Banks, Regional Rural Banks, Scheduled Primary (Urban) Co-operative Banks, and Scheduled State Co-operative Banks to maintain the following with the Reserve Bank of India, effective from the fortnight beginning August 12, 2023, in accordance with the power granted under sub-section (1A) of Section 42 of the Reserve Bank of India Act, 1934:

• An additional average daily balance over and above the average daily balance required to be maintained under sub-section (1) of Section 42; and
• The minimum amount of the additional average daily balance shall not be lower than 10% of the increase in net demand and time liabilities from May 19, 2023 to July 28, 2023.