The Reserve Bank of India's move to cut the cash reserve ratio
(CRR) for banks is aimed at permanently addressing the structural liquidity deficit, RBI Governor Duvvuri Subbarao said.
Although the central bank left the cash reserve ratio
unchanged at 4.
The bank also said it will keep the cash reserve ratio
of scheduled banks unchanged at 4.
The Reserve Bank of India (RBI) cut the cash reserve ratio
(CRR) for commercial banks by 75 basis points to 4.
In its second move in just a few weeks to drain liquidity from the banking system, the Reserve Bank of India (RBI) on Tuesday raised the cash reserve ratio
(CRR) by 25 basis points to 8.
He said as far as bankers are concerned, the preferable mode is passing on the reduction of cash reserve ratio
, which provides leeway in reducing interest rates on advances.
Based on an assessment of the present and prospective micro economic situation, we have decided to keep the repo rate, under the liquidity adjustment facility (LAF), also the cash reserve ratio
(CRR) unchanged," RBI Governor D Subbarao said.
The RBI also said on Tuesday that banks will need to maintain 99 percent of their daily cash reserve ratio
requirements -- the deposits they set aside with the RBI -- against a 70 percent level now.
However, what was not expected was the decision by the Reserve Bank of India to reduce the cash reserve ratio
(CRR) -- the share of deposits that banks must keep with the central bank -- by 0.
On Monday, the Reserve Bank of India (RBI) has announced that it has reduced cash reserve ratio
(CRR) by 0.
The Reserve Bank of India also cut the cash 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.