Bankers plead with RBI not to increase CRR

Bankers plead with RBI not to increase CRR

BS Reporter / Mumbai October 4, 2007

Bankers today pleaded with the Reserve Bank of India (RBI) against raising the cash reserve ratio (CRR) further to suck out excess liquidity in the banking system.

Banks do not want monetary actions that have direct implications on interest rates, as they are grappling with high deposit and lending rates amid flush liquidity and stagnant credit growth. Bankers, led by O P Bhatt, chairman of State Bank of India (SBI), today met the RBI governor Y V Reddy as part of the central bank