, stcbs and dccbs cannot continue to operate in the banking environment with such a low capital base. these banks were introduced to the concept of capital to risk weighted assets ratio ( crar ) in december 2007 and advised to disclose the level of crar every year as ‘ notes on accounts ’ to their balance sheets. however, no minimum crar was prescribed under basel - i framework for these banks. after infusion of recapitalisation assistance under the government of india package ( vaidyanathan committee - i ) and licensing of a large number of banks, the matter was reviewed by rbi. 7. in the context of financial stability of the rural cooperative banking system and with a view to strengthening the capital structure of state and central cooperative banks, it was decided to prescribe a minimum crar for stcbs / dccbs and the banks were advised to achieve / maintain a minimum crar of 7 % on an ongoing basis with effect from march 31, 2015 and 9 % with effect from march 31, 2017. bis central bankers ’ speeches 8. with a view to broadening the avenues for mobilizing additional capital for meeting the higher crar, it was decided to permit these banks to issue long term ( subordinated ) deposits ( ltd ) and innovative perpetual debt instruments ( ipdi ). we are receiving good response to these measures from several banks. applicability of crr and slr to state and central coop. banks 9. under the banking regulation act, 1949, banks are required to maintain a prescribed percentage of their demand and time liabilities as cash reserves ( crr ) and liquid assets ( slr ). these assets act as buffers to meet the emergency liquidity requirements of the banks. non - scheduled cooperative banks were prescribed crr of 3 % and slr of 25 % in 1966. these prescriptions remained unchanged for several decades. the banking laws ( amendment ) act, 2012 amended section 18 and 24 of b. r. act, 1949 ( as applicable to cooperative societies ) and granted powers to rbi to prescribe crr without any floor or ceiling and prescribe slr without any floor but not exceeding 40 %. scheduled state cooperative banks were required to maintain crr at rates as announced by rbi periodically under section 42 of the rbi act, 1934. pursuant to the amendments to the b. r. act, 1949 ( aacs ), crr and slr for all cooperative banks were brought on par with scheduled commercial

been considerably off the mark. looking back, it is also easy to understand why. in 1905, prices had remained approximately unchanged for several decades. the krone ’ s precursor, the speciedaler, and then the krone itself had been pegged to silver and gold standards since 1842. these systems provided a fixed nominal anchor for the economy and for prices. this was also the case for several of our trading partners. from 1875, norway was also a member of the scandinavian currency union. a more detailed description will be provided by professor lars jonung. economists of the time could not, based on historical evidence, predict that national and international monetary systems would be facing substantial disturbances that would push up the price level considerably and lead to extensive instability. with the first world war, the gold standard was suspended and the money supply and price level rose sharply. the deflationary policy of the 1920s brought the price level down, but probably also contributed to instability. the price level rose again during the second world war, when the occupying powers used the printing press to finance a substantial portion of their expenditure. the economic policy of the 1970s and 1980s contributed to high inflation. so, how well would economists in 1905 have predicted the norwegian level of real income in 2005? they would have been off the mark here too. they were not in a position to predict that the growth rate in the norwegian and global economies would rise as a result of considerable technological progress, restructuring and higher productivity. on the other hand, they could to some extent have predicted our current industry structure based on their economic history. from 1865 to 1900, primary industries ’ share of total gdp fell from about 34 per cent to 22 per cent. in the same period, manufacturing, other goods production and service industries accounted for an increasing share of total gdp. in 1900, about 24 per cent of gdp was generated by manufacturing and other goods production. if the economists of the time had projected developments in these three industries, they would have estimated that primary industries ’ share of total gdp would fall to below 5 per cent. manufacturing and other goods production would increase its share to 30 per cent and service industries to 66 per cent. value - added in primary industries fell somewhat more than economists in 1905 would have projected and service industries increased somewhat less. they would have been less accurate in their projections for developments in manufacturing. although manufacturing ’ s share of total gdp increased up to the beginning of the 1950s, growth in private and public services gradually bypassed manufacturing,