RBI reduces CRR by 0.75 basis points

The Reserve Bank of India (RBI) has decided to ease liquidity in the country through recent cuts in cash reserve ratio (CRR) may help banks with adequate liquidity to improve profitability in the fourth quarter. The 75-basis points cut in CRR – the slice of deposits banks keep as cash with the RBI – on Friday will release an additional 48,000 crore into the system, allowing lenders with robust liquidity to deploy the cash in government bonds or lending operations and improve net interest margins by 5-15 bps.

The Current CRR is: 4.75%

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