Please refer to BSD Circular No.3 dated February 15, 2006 on the captioned subject.

2) It has been decided to revise the Cash Reserve Requirements (CRR) for Islamic Banks (IBs) / Islamic Banking Branches (IBBs) as under with effect from 22nd July 2006:-

a) Weekly average of 7% (subject to daily minimum of 4%) of total Demand Liabilities (including Time Deposits with tenor of less than 6 months); and

b) Weekly average of 3% (subject to daily minimum of 1%) of total Time Liabilities (including Time Deposits with tenor of 6 months and above).

3) Moreover, IBs / IBBs would continue to meet the Statutory Liquidity (SLR) of 8% (excluding CRR) of their Time and Demand Liabilities in the prescribed manner as required vide BSD Circular No. 3 dated 15th February 2006.

4) All other instructions on the subject including those issued vide BSD Circular No.9 dated 18th July, 2006 will remain unchanged.

Please acknowledge receipt.