The
Presidents/Chief Executives
All Banks
Dear
Sirs / Madam,
Maintenance
of Cash Reserve Requirement (CRR)
Please
refer to the BSD Circular No. 04 dated August 01, 2007,
and Circular No. 09 dated July 18, 2006, regarding Maintenance
of Cash Reserve Requirement (CRR) and Statutory Liquidity
Requirement (SLR).
2)
It is clarified that with effect from August 4, 2007, in
the event of premature withdrawals of Time Deposits of over
one year, banks will be required to maintain, from the date
of withdrawal and for the period for which they availed
the benefit of Zero CRR, an additional CRR equivalent to
7% of the amount of such premature withdrawal.
3) The breakup of Time and Demand Liabilities to be used
for calculating the required CRR and SLR has accordingly
been revised and enclosed as Annexure-A. It is further clarified
that the revised CRR requirements are also applicable to
Islamic Banks / Branches.
4) All other instructions shall however, remain, unchanged.
Please acknowledge receipt.
Annex: