RBI on Thursday reduced the statutory liquidity ratio (SLR) requirements of urban cooperative banks by 250 basis points.
RBI on Thursday reduced the statutory liquidity ratio (SLR) requirements of urban cooperative banks by 250 basis points (bps) of their total demand and time liabilities to 22.5%.
However, the central bank decided to increase the cash reserve ratio (CRR) requirement for UCBs by 100 bps to 4% effective from July 12, the RBI said in a notification on its website.
The RBI also said the balances kept with state cooperative banks and district central cooperative banks, as also term deposits with public sector banks, will not eligible of being reckoned for SLR purpose from April 1 2015.
First time, non-scheduled UCB’s CRR/SLR rates are revised by RBI. Release of 2.5% SLR will lead to selling of G.Secs by UCBs…Banking Law Amendment Act 2012 gives powers to RBI for ordering special audit to UCBs in case of need. To see in detail other aspects
In a three tier credit co-operative system whether apex bank can exist after 31st march 2015, if the above notification implemented? Definitely this will lead to decay of the the existing system and co-operative banking sector.