Financial institutions accepting term deposits will be allowed to maintain cash reserve ratio CRR at an average rate of 1.5% per day on a bi-weekly basis.
On Sunday, the Central Bank's Department of Financial Institutions and Markets issued a circular in this regard.
The circular has been sent to the Managing Directors / CEOs of all financial institutions operating in Bangladesh.
However, the amount of this reserve shall never be less than 1%.
The previous SLR retention rate for financial institutions accepting term deposits will remain unchanged at 5% and the previous SLR retention rate for financial institutions not accepting deposits will remain unchanged at 2.5%.
The revised rate of CRR will be effective from 1st June 2020 and will remain in force until further instructions.
