Monetary policy: RBI to roll back CRR cut in phases, assures liquidity

RBI keeps repo rate unchanged at 4%, pegs FY22 GDP growth at 10.5%

The Reserve Bank of India (RBI) on Friday kept its policy rates unchanged, assured ample liquidity for the bond market, and an 'accommodative' stance for as long as necessary.

After the policy, repo rate (at which the RBI lends to the banks) stands at 4 per cent and the reverse repo rate (at which it takes money from banks) at 3.35 per cent. But the cash reserve ratio (CRR), or the amount of cash that banks are required to maintain with the RBI at zero interest will be scaled back to 4 per cent in two phases. Effective March 27,