Banks pitch SORR as overnight benchmark ahead of RBI policy meeting

The central bank has been conducting a series of interactions with banks, seeking feedback to tide over the liquidity crunch in the banking system and improve monetary transmission

Bankers have requested the Reserve Bank of India (RBI) to make secured overnight rupee rate (SORR) the overnight benchmark instead of weighted average call rate (WACR) in the monetary policy review meeting next week. They have also asked for reduction in the cash reserve ratio (CRR) requirement for banks from the current 4 per cent.

 

The central bank has been conducting a series of interactions with banks, asking them for feedback to tide over the liquidity crunch and improve monetary transmission.

 

“The RBI may declare SORR as the benchmark rate of overnight money market instruments from the existing interbank call