3% Crr, Flexi Slr Likely For Fis Turned Banks

The Reserve Bank of India (RBI) is likely to make relaxations in the cash reserve ratio (CRR) and priority sector lending norms for those financial institutions which convert themselves into banks.

These FIs may be allowed to start with 3 per cent CRR, the minimum stipulated requirement under Section 42 of RBI Act, 1934. They are likely to be given a few years to progressively shift to the CRR level adhered to by commercial banks. At present, banks