The central bank is to introduce a mandatory 2 percent reserve ratio
for all domestic banks to boost demand for public debt.
India's central bank on Tuesday kept its key policy rates and the reserve ratios
unchanged in line with the predictions, while awaiting more robust data on inflation and action from commercial banks to soften their cost of credit to alter its stance.
It is said that while a utility needs to secure around 8 percent reserve ratio
for stable electricity supply, it may have to issue numerical targets for power saving if the ratio slips below 3 percent.
He also noted that the actuary projects that the MMI Fund capital reserve ratio
will be positive by FY 2014 and reach 2.
So, they may see net interest margin of about 150250 basis points even after deducting the new required loan reserve ratio
The cash reserve ratio
, the proportion of deposits that banks have to hold with the RBI, is a popular instrument to inject cash into the system.
Basci also said the bank could raise daily foreign exchange selling amount gradually and make additional reduction in foreign currency required reserve ratio
in case TL lost extreme value due to global concerns in coming days.
5 percent, and increased the required reserve ratio
by 200 basis points to ensure an overall tightening of monetary policy.
25% and reduce the required reserve ratio
by 2 percentage points to 6 percent as of April 1, 2010.
In the first quarter of 2009, Arkansas banks collectively had a loan-loss reserve ratio
The Reserve Bank of India also raised the cash reserve ratio
of banks in an unexpectedly aggressive bid to quash double-digit inflation.
A 3 percent reserve ratio
will be assessed on net transaction accounts more than $7.