21. Replacement of section 94 of the principal enactment

Section 94 of the principal enactment is hereby repealed and the following section substituted therefor :–

94. (1) The Monetary Board shall prescribe, and may, from time to time, vary, the reserve ratios applicable to each class of deposit liabilities and each category or other financial liabilities against which reserves are required to be maintained under section 93.

Any increase in a reserve ratio which is to be applicable in respect of any liability that existed on the date of the increase shall be made by the Monetary Board in a gradual manner and shall not exceed four percentage points in any one period of thirty days.

The Monetary Board shall, other than in exceptional circumstances, endeavour to give commercial banks and other prescribed financial institutions not less than fourteen days notice of the date on which any increase in a reserve ratio is to become effective.”.