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may allow such banks or institutions a period not exceeding three years to attain the Bank’s reserve requirements; (iii) any such prescriptions of, or increases in, the required reserve ratios shall be effective only after at least 15 days notice thereof has been communicated to the financial institutions; (iv) reserves held as demand deposits with the Bank, may under such regulations and subject to such charges as may be prescribed by the Bank, be withdrawn temporarily by the financial institutions for the purposes of meeting their existing liabilities and may further serve as a basis for the clearance of cheques and the settlement of balances among financial institutions.

(Am 2015) (4) The Bank may impose on any financial institution that fails to maintain required reserves in accordance with paragraphs (2) and (3) of this Article a charge at a rate of eleven point five percent on the amount of the deficiency for so long as the deficiency continues. Such charge shall be payable to the Bank on such date as may be prescribed by the Bank and may be recovered by deduction from any balance of the financial institution held by the Bank. (1) The Bank may, from time to time prescribe either - (a) by written notice to the main office of each financial institution in the territories of the Participating Governments; or (b) by publication in newspapers of general circulation in the territories of the Participating Governments or in the Official Gazette of each territory - (i) the method of computation and minimum and maximum rates of interest payable in respect of deposit and other similar liabilities; (ii)

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the permissible purposes, aggregate ceilings, maximum amounts beyond which the Bank’s approval is necessary, maximum maturities and maximum interest chargeable, and minimum cash, margin or security required, in respect of - (a) the making of advances whether by loans or overdrafts and investments; (b) the discounting of bills and notes; (c) the issuing of letters of credit; (d) the granting of acceptances and other credit; and each depositor in a financial institution the effective annual interest rates payable in respect of deposits made therewith; each person to whom credit is extended the effective annual interest rate payable in respect thereof; (b) the manner of the disclosure to the public and to - (a)

(iii)

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