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

Bangladesh Bank Financial Institutions and Markets Department Chief Executive Motijheel, Dhaka-1000 Bangladesh

DFIM Circular No. 03 Date:

To, The Chief Executive/Managing Director All Financial Institutions operating in Bangladesh.

Subject: Re-fixation of Cash Reserve Ratio (CRR) of Financial Institutions.

Considering the situation arising from the Novel Coronavirus, it has been decided to re-fix the Cash Reserve Ratio (CRR) of Financial Institutions.

Reference is invited to Bangladesh Bank's FID Circular No. 06 dated November 06, 2003, and FID Circular No. 02 dated November 10, 2004, on the subject matter.

It has been decided regarding the Cash Reserve Ratio (CRR) of Financial Institutions that:

a) Term-deposit-accepting Financial Institutions may maintain CRR at a rate of 1.5% on a fortnightly average basis, provided that on any day the amount of this reserve does not fall below 1.00%; b) The previous rate of SLR maintenance for term-deposit-accepting Financial Institutions, 5%, and the previous rate of SLR maintenance for Financial Institutions that do not accept deposits, 2.5%, will remain unchanged; and

The aforementioned changed rate of CRR will be effective from June 1, 2020, and will remain in force until further instructions are issued.

Yours faithfully,

(Md. Zulkar Nayan) Deputy General Manager Phone: 9530178

07 Asharh 1427 21 June 2020