abhishreshthaa
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Operations in Call / Notice Money Market
To reduce excessive reliance by urban co-operative banks on call / notice money market, it has been decided that on a daily basis, the UCB’s borrowings in call / notice money market should not exceed 2 per cent of their aggregate deposits as at the end of March of the previous financial year.
UCBs will, however, be free to lend in the call / notice money market without any limit. UCBs will have to report their borrowings and lending in the call / notice money market to the respective regional offices of the Reserve Bank on a fortnightly basis (as per reporting fortnight) within ten days after the end of the fortnight to which they relate).
To reduce excessive reliance by urban co-operative banks on call / notice money market, it has been decided that on a daily basis, the UCB’s borrowings in call / notice money market should not exceed 2 per cent of their aggregate deposits as at the end of March of the previous financial year.
UCBs will, however, be free to lend in the call / notice money market without any limit. UCBs will have to report their borrowings and lending in the call / notice money market to the respective regional offices of the Reserve Bank on a fortnightly basis (as per reporting fortnight) within ten days after the end of the fortnight to which they relate).