Available at: https://cepr.org/voxeu/columns/banks-do-not-createmoney-out-thin-air  This forced banks to come to the SARB to fund the missing balances, which we provided through weekly auctions where we charged the repo rate. In theory, and most often in practice too, the market ended up with exactly enough liquidity to satisfy reserve requirements, no more and no less.
For excess reserves, which is any cash banks were not required to hold for regulatory purposes, the SARB would only pay a penalty deposit rate of repo minus 1%. This incentivized banks to minimise their holdings of banks reserves, lending out spare cash to other banks.