BackRBI tightens norms for non-scheduled UCBs
The central bank tightens regulations for non-scheduled co-operative banks, asks them to keep aside 4% of their deposits as cash reserve ratio
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Mumbai: Reserve Bank of India (RBI) has tightened regulations for non-scheduled co-operative banks, asking them to keep aside 4% of their deposits as cash reserve ratio (CRR) starting from 12 July 2014, up from 3% of deposits currently, to bring them on a par with their larger scheduled urban co-operative banks. Also, the percentage of deposits these banks have to compulsorily invest in government securities or statutory liquidity requirement (SLR) has been cut to 22.5% from 25% earlier effective from 12 July. “It may be noted that balances kept with state co-operative banks / district central co-operative banks as also term deposits with public sector banks will not be eligible for being reckoned for SLR purpose with effect from 1 April 2015," RBI said.
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