In order to maintain the equality between the nonscheduled urban co-operative banks (UCB) and scheduled primary urban co-operative banks, last day Reserve bank of India increased the Cash reserve ratio of the non scheduled UCBs. RBI has increased the CRR by 100 basis points.
The new CRR for the non scheduled UCBs is 4%. The new CRR will applicable from July 12 onwards. There are nearly 1,500 non scheduled UCB banks in India. This measure will bring total demand and time liabilities of non scheduled UCB banks on par with scheduled primary (urban) co-operative Banks.
Further RBI has reduced the SLR ratio requirement for them by 0.50%. Now the SLR ratio requirement is 22.50%.