Thursday, December 04, 2025 | 12:47 AM ISTहिंदी में पढें
Business Standard
Notification Icon
userprofile IconSearch
What is Cash Reserve Ratio (CRR)?

Cash Reserve Ratio

About Cash Reserve Ratio

What is Cash Reserve Ratio (CRR)?

Cash Reserve Ratio

Under cash reserve ratio (CRR), the commercial banks have to hold a certain minimum amount of deposit as reserves with the central bank. The percentage of cash required to be kept in reserves as against the bank's total deposits, is called the Cash Reserve Ratio. The cash reserve is either stored in the bank’s vault or is sent to the RBI. Banks can’t lend the CRR money to corporates or individual borrowers, banks can’t use that money for investment purposes. And Banks don’t earn any interest on that money.

Why do banks have to reserve cash with RBI?

Since
...
Read More

Latest Updates on Cash Reserve Ratio

RBI's liquidity boost falters amid FX market intervention, say analysts

In June, the central bank announced a phased 100-basis-points CRR cut from September to November to release about ₹2.5 trillion ($28.3 billion)

Image
Updated On : 15 Oct 2025 | 2:29 PM IST

India's 8% growth goal at risk as private capex lags: YES Securities

YES Securities warns India's growth relies too heavily on government spending as private capital expenditure falters despite record corporate cash holdings of ₹10.35 trillion

Image
Updated On : 23 Sep 2025 | 1:03 PM IST

Comfortable liquidity reinforced transmission of rate cuts in markets

System liquidity, as measured by the net position under the liquidity adjustment facility, has been in surplus, averaging ₹3 trillion per day since the last MPC meeting

Image
Updated On : 07 Aug 2025 | 12:36 AM IST

Which consumer stocks to buy as RBI cuts repo rate, CRR, inflation eases?

Consumption stocks: With RBI cutting repo rate and CRR amid easing inflation, consumer sentiment is expected to improve. Find out which consumer stocks could benefit the most and top stocks to buy

Image
Updated On : 11 Jun 2025 | 10:57 PM IST

CRR at 3% seen as new normal, RBI says it's sufficient for liquidity

The cut in CRR would release primary liquidity of about Rs 2.5 lakh crore to the banking system by December 2025

Image
Updated On : 06 Jun 2025 | 11:57 PM IST

RBI monetary policy: Repo rate cut brings early Diwali cheer for consumers

The RBI reduced the policy repo rate for a third successive time, which was widely expected

Image
Updated On : 06 Jun 2025 | 6:59 PM IST

RBI Policy: Full of surprises, dovish on growth, neutral on further cuts

With inflation expected to rise back to above 4 per cent by Q4-FY26, the Monetary Policy Committee has capitalised upon the available headroom to frontload rate action

Image
Updated On : 06 Jun 2025 | 12:40 PM IST

5 key takeaways from RBI MPC June meet: Rate cut, CRR, inflation and more

RBI MPC's latest decisions come amid easing inflationary pressures and continued challenges to economic growth. Here are the highlights from the central bank's June policy meet

Image
Updated On : 06 Jun 2025 | 12:27 PM IST

RBI may use CRR as regulatory tool, repo rate cuts likely in 2025: SBI

The report predicts that the RBI could cut the repo rate by 25 basis points in its February 2025 policy meeting, with a total reduction of at least 75 basis points over the entire easing cycle

Image
Updated On : 04 Feb 2025 | 12:37 PM IST

RBI's Rs 1.5 trillion liquidity booster raises Feb rate cut hopes

RBI announces OMOs, VRR auction, $-rupee buy-sell swap

Image
Updated On : 27 Jan 2025 | 11:32 PM IST

Despite CRR cut, liquidity deficit in banking system crosses Rs 2 trillion

This reduction in the CRR released primary liquidity of approximately Rs 1.16 trillion into the banking system

Image
Updated On : 01 Jan 2025 | 12:12 AM IST

Punjab & Sind Bank plans to raise Rs 3,000 cr from infra bonds this month

Asked about the timing of fundraise, he said, it would be tentatively in the third week of this month. The base issue size is going to be Rs 500 crore, with a greenshoe option of Rs 2,500 crore

Image
Updated On : 12 Dec 2024 | 11:55 AM IST
Updated On : 06 Dec 2024 | 11:47 PM IST

RBI MPC Updates: Shaktikanta Das headlines inflation, says no room for knee-jerk reactions

RBI Monetary Policy Meeting Dec 2024 Updates: Catch all the updates here

Image
Updated On : 06 Dec 2024 | 4:08 PM IST

RBI slashes Cash Reserve Ratio to 4%: What it means for banks and you

RBI governor Shaktikanta Das said that the CRR reduction will release Rs 1.16 trillion into the banking system, providing additional liquidity and enable banks to extend more loans

Image
Updated On : 06 Dec 2024 | 12:02 PM IST

RBI set to announce decision on key interest rate on Dec 6 at 10 am

Experts are of the view that the central bank is likely to opt for status quo on the short-term lending rate (repo), and will possibly tinker with cash reserve ratio (CRR)

Image
Updated On : 05 Dec 2024 | 7:35 PM IST

Share markets rise on expectations of CRR cut by RBI later this week

The NSE Nifty 50 climbed 0.32 per cent to 24,534.65 points, as of 11:02 a.m. IST, while the BSE Sensex gained 0.37 per cent to 81,145.54

Image
Updated On : 04 Dec 2024 | 5:10 PM IST

Money in the bank: Debate over cash reserve ratio's utility grows

Indians are flocking to invest in stocks, putting pressure on banks which need to strike a balance between deposits and loans

Image
Updated On : 06 Oct 2024 | 9:15 PM IST

SBI raises Rs 10,000 crore at a coupon of 7.36% in 15-year infra bonds

Several other state-owned lenders such as Canara Bank and Bank of India are also planning to raise funds through infrastructure bonds

Image
Updated On : 10 Jul 2024 | 9:46 PM IST

Lenders seek better terms to increase green and sustainable financing

According to current norms, for Rs 10,000 crore of loans, banks have to ensure Rs 4,000 crore of priority sector lending target

Image
Updated On : 14 Jun 2024 | 11:43 PM IST