Karachi, Pakistan (BBN) – The State Bank of Pakistan (SBP), the country’s central bank, reduced the cash reserves requirement (CRR) by one per cent, with immediate effect, instead of November 15 as early notified.
The SBP issued a circular in this connection on Saturday and asked the president and chief executive officers of commercial banks to follow the latest instruction for maintaining the CRR with the central bank.
The banks shall maintain a weekly average of 5 per cent of CRR (subject to a daily minimum of 4) of the total Demand Liabilities (including Time Deposits with tenor of less than 1 year), according to the circular.
“Time liabilities, including time deposits with tenor of one year and above, will not require any cash reserve,” it added.
The central bank took the latest move aiming to keep the country’s inter-bank money market stable.
BBN/SI/SSR/AD-02November08-10:01 AM (BST)