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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.)

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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