Cash Reserve Ratio (CRR) cut to inject Rs.17,000 crore in the Indian Banking System.
The Reserve Bank of India (RBI), central banking institution in India and controller of the monetary policy of the Indian rupee, retained short-term policy rate, repo rate, unchanged at 8 per cent while slashed the Cash Reserve Ratio (CRR) by 25 basis points to 4.50 per cent, injecting a liquidity of around Rs.17,000 crore into the banking system.
The CRR cut will be effective from September 22, 2012. CRR is the portion of deposits that banks keep with the RBI, and it does not earn any interest for banks. RBI slashed CRR by 150 basis points so far in 2012.