You are here: Home » Reuters » News
Business Standard

RBI imposes higher cash reserve ratio on banks

Reuters  |  NEW DELHI 

(Reuters) - The Reserve Bank of (RBI) asked banks to maintain an incremental reserve ratio of 100 percent to absorb excess system liquidity after government's move to withdraw large denominated currency notes sparked a surge in bank deposits.

The central bank asked banks to maintain the incremental reserve ratio from the two-weekly cycle starting Nov. 26, it said in circular on Saturday.

The said the overall rate for the reserve ratio remained unchanged at 4 percent.

The said the move is "intended to be a temporary measure" and will be reviewed on Dec. 9 or earlier.

To tackle the surge in system liquidity the central bank relaxed its liquidity auction rules by expanding its basket of securities that it accepts as collateral.

(Reporting by Neha Dasgupta)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

RECOMMENDED FOR YOU

RBI imposes higher cash reserve ratio on banks

NEW DELHI (Reuters) - The Reserve Bank of India (RBI) asked banks to maintain an incremental cash reserve ratio of 100 percent to absorb excess banking system liquidity after government's move to withdraw large denominated currency notes sparked a surge in bank deposits.

(Reuters) - The Reserve Bank of (RBI) asked banks to maintain an incremental reserve ratio of 100 percent to absorb excess system liquidity after government's move to withdraw large denominated currency notes sparked a surge in bank deposits.

The central bank asked banks to maintain the incremental reserve ratio from the two-weekly cycle starting Nov. 26, it said in circular on Saturday.

The said the overall rate for the reserve ratio remained unchanged at 4 percent.

The said the move is "intended to be a temporary measure" and will be reviewed on Dec. 9 or earlier.

To tackle the surge in system liquidity the central bank relaxed its liquidity auction rules by expanding its basket of securities that it accepts as collateral.

(Reporting by Neha Dasgupta)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

RBI imposes higher cash reserve ratio on banks

(Reuters) - The Reserve Bank of (RBI) asked banks to maintain an incremental reserve ratio of 100 percent to absorb excess system liquidity after government's move to withdraw large denominated currency notes sparked a surge in bank deposits.

The central bank asked banks to maintain the incremental reserve ratio from the two-weekly cycle starting Nov. 26, it said in circular on Saturday.

The said the overall rate for the reserve ratio remained unchanged at 4 percent.

The said the move is "intended to be a temporary measure" and will be reviewed on Dec. 9 or earlier.

To tackle the surge in system liquidity the central bank relaxed its liquidity auction rules by expanding its basket of securities that it accepts as collateral.

(Reporting by Neha Dasgupta)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

image
Business Standard
177 22

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard