State Bank of India (SBI) chairman Pratip Chaudhuri want a national debate on Cash Reserve Ratio (CRR) of Reserve Bank of India (RBI).
State Bank of India (SBI) Chairman Pratip Chaudhuri reiterated his stance on Cash Reserve Ratio (CRR) that it should be phased out completely and wanted a debate on the subject.
SBI chief first made this suggestion for CRR phase-out in Kolkata a few days ago. However, the Reserve Bank of India (RBI) Deputy Governor K. C. Chakrabarty, in an interaction with The Hindu recently said that banks had to work within the rules laid down by the regulator authority.
Demanding a national debate on the subject, Mr. Chaudhuri said that nobody was giving any reason why it could not be abolished. He was talking to journalists at a press conference to announce a two-day annual conference on ‘Global banking: paradigm shift’ being organised by FICCI and Indian Banks’ Association (IBA) on September 4 and 5.
Mr. Pratip Chaudhuri said that banks needed a level-playing field as insurance companies and non-banking finance companies (NBFCs) were not required to keep such mandatory funds with regulators.