June 14, 2022 (MLN): The State Bank of Pakistan (SBP) has decided that Cash Reserve Requirement (CRR) for banks will not be applicable on targets of housing and construction finance for the quarter ending September 30, 2022, and onwards till further instructions on the matter.
In a circular issued today, SBP said, “To facilitate the banks, State Bank has decided that the lower/additional Cash Reserve Requirement for banks that meet/do not meet quarterly targets will not be applicable on surplus/shortfall in targets of housing and construction finance for the quarter ending September 30, 2022, and onwards till further instructions on the matter.”
Accordingly, banks will maintain lower/additional CRR in respect of surplus/shortfall in targets for the quarter ending June 30, 2022, in the next quarter as per the defined procedure.
This means banks will maintain CRR (without lower/additional requirements) from the first reserve maintenance period starting after October 21, 2022.
All other instructions on the subject shall remain unchanged, the circular added.
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