The central bank has issued new proforma for maintenance of cash reserve requirement (CRR). In a circular, issued on Monday to the presidents and chief executives of all banks, the central bank said that it was clarified that from August 4.
In the event of premature withdrawals of time deposits of over one year, the banks would be required to maintain, from the date of withdrawal and for the period for which they availed of the benefit of Zero CRR, an additional CRR equivalent to seven percent of the amount of such premature withdrawals.
The break-up of time and demand liabilities to be used for calculating the required CRR and SLR has accordingly been revised and the central bank has issued the pro forma. It is further clarified that the revised CRR requirements were also applicable to Islamic bank branches.