Section 46: Compulsory Deposit of Commercial Banks and Financial Institutions

1) The Bank shall issue directives to the commercial banks and financial institutions to maintain compulsory reserves with the Bank in proportion to the deposits accumulated with them, borrowed funds or other liabilities prescribed by the Bank. It shall be the duty of commercial banks and financial institutions to maintain the compulsory deposit in the Bank as prescribed by the Bank.

2) While computing the compulsory deposit of commercial banks and financial institutions, the Bank shall compute on the basis of the daily average of deposits by prescribing the duration.