The Presidents/Chief Executive Officers

All Banks including Islamic Banks and Islamic Banking Branches

Dear Sirs/Madams,

Maintenance of Cash Reserve Requirement (CRR)

Please refer to DMMD Circular no. 04 dated March 08, 2018 regarding Statutory Cash Reserve Requirement.

In this regard, it has been decided to revise Para 3(a) of above referred circular as under:

Ref.#	Current	Revised
3(a)	At present Cash Reserves are required to be maintained at an average of 5% of total of demand liabilities and time deposits with tenor of less than 1 year, during the reserve maintenance period; however it is subject to a daily minimum requirement of 3%.	During the reserve maintenance period, Cash Reserves shall be maintained at an average of 6% of total of demand liabilities and time deposits with tenor of less than 1 year; however, it is subject to a daily minimum requirement of 4%.

The revised average Cash Reserve Requirement of 6% shall be effective from November 12, 2021 whereas the revised daily minimum requirement of 4% shall be effective from November 15, 2021.

All other instructions on the subject shall remain unchanged.