Cash Reserve Ration (CRR) is a waste for economy – SBI Chairman Pratip Chaudhuri.
State Bank of India (SBI) Chairman Pratip Chaudhuri once again expressed his open disagreement with the Reserve Bank of India (RBI), the central banking institutions in India, on Cash Reserve Ration (CRR) saying it is a “waste” for the economy and successive interest rate cuts by central bank have failed to contain inflation.
“Of course, I am an incurable optimist and I had expected a 50 basis points CRR cut. I still hold that CRR is a waste for the economy,” he said after RBI Governor D Subbarao unveiled the half-year review of the credit policy which had a 0.25 per cent cut in CRR.
This is not the first time the head of the largest bank has had a run-in with the RBI. Chaudhuri had raised the issue of CRR in August too, but was vehemently countered by RBI Deputy Governor K C Chakrabarty.