Lending from Cash Reserve Ratio buffer to get 5-year exemption: RBI

The Reserve Bank on Monday said the special lending window with CRR exemption will be open from February 14 and incremental loans disbursed under this facility will have CRR exemption for the next five years.

This means that banks will not be needed to make additional cash reserve ratio against any incremental loans disbursed to the targeted segments.

The window opens on February 14 for six months ending July 31, 2020, but the net demand and time liabilities (NDTL) will be calculated as of January 31, 2020, the central bank circular said this evening.

As an additional liquidity measure and also to nudge