Circulars/Notifications - Banking Supervision Department  
 BSD Circular Letter No. 15
July 13, 2001  

All Banks/NBFIs

Dear Sirs,

CASH RESERVE REQUIREMENT FOR DEPOSITS RAISED UNDER FE CIRCULAR 25 OF 1998

 

Please refer to BSD Circular No 18 dated 31st March, 2001 on the captioned subject.

2)         On the queries raised by various banks with regard to the aforesaid circular, it is clarified that for the purpose of calculating the balance in 5% Cash Reserve Account-CRA (US$) and 20% Special Cash Reserve Account-SCRA (US$), the amount of FE-25 deposits at the close of business on every Saturday (and if Saturday is a holiday, on the previous working day) shall be taken into account. The FE-25 deposits so calculated would be applicable w.e.f. the next working day i.e. Monday and will be treated constant upto Sunday. For example if any bank/NBFI has FE-25 deposits of US$ 100 million on 23.06.2001 (Saturday) then the bank/NBFI would be required to maintain a minimum balance in CRA of not less than US$ 5 million and in SCRA of not less than US$ 20 million on daily basis during the period from 25.06.2001 (Monday) to 01.07.2001 (Sunday).

3)         Further, it has been observed that some of the scheduled banks are not correctly reporting the amount of FE-25 deposits and cash reserves maintained thereagainst in their Weekly Statement of Position. All banks are, therefore, advised to ensure that FE-25 deposits held by them are included in the Demand Deposits (General) – (Code 01-01) and  / or  Time Deposits (General) – (Code 02-01), as the case may be, on the liability side in their Weekly Statement of Position and details thereof will be provided in the foot note against Code 80-03 as advised earlier vide above referred Circular. The amount of FE-25 deposits in foreign currency against Code 80-03(ii) will be shown upto three decimal points after a million. Furthermore, the US$ cash reserves maintained with SBP are to be included  in the head “ Balance with State Bank of Pakistan” under Code 12-01, of Weekly Statement of Position, however, the details thereof will be provided in the foot note against code 53-03 titled “Placement with SBP/FCY Cash Reserves maintained against FE-25 deposits”.

                                   

                 Please acknowledge receipt.


Yours faithfully,
(Shaukat Zaman)
Senior Joint Director
       
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