DFIM Circular No. 03: Re-fixation of Cash Reserve Ratio (CRR) of Financial Institutions

Bangladesh Bank Financial Institutions and Markets DepartmentHead OfficeMotijheel, Dhaka-1000BangladeshDFIM Circular No.: 03 Date:Chief Executive/Managing DirectorAll Financial Institutions operating in Bangladesh.Subject: Re-fixation of Cash Reserve Ratio (CRR) of Financial Institutions.Considering the situation arising from the novel coronavirus, a decision has been taken to re-fix the Cash Reserve Ratio (CRR) for financial institutions.Attention is drawn to Bangladesh Bank's FID Circular No.-06 dated November 06, 2003, and FID Circular No.-02 dated November 10, 2004, regarding the above subject.Regarding the Cash Reserve Ratio (CRR) for financial institutions, it has been decided that:a) Financial institutions accepting term deposits may maintain CRR at an average daily rate of 1.5% on a bi-weekly basis, provided that the amount of this reserve shall not be less than 1.00% on any given day;b) The previous SLR maintenance rate of 5% for financial institutions accepting term deposits and 2.5% for financial institutions not accepting deposits will remain unchanged; andc) The said revised CRR rate will be effective from June 1, 2020, and will remain in force until further instructions.Yours faithfully,(Md. Zulkar Nayen)General ManagerPhone: 953017807 Ashar 1427June 21, 2020