 "Reserve Bank of India, cash reserve ratio, CRR, RBI MPC Meeting, RBI")
The Reserve Bank of India (RBI) has decided to cut the cash reserve ratio (CRR) requirement of banks by 100 basis points (bps) to 3 per cent of net demand and time liabilities (NDTL) and this could be the new normal.
It will be done in a staggered manner — with effect from the fortnights beginning September 6, October 4, November 1 and November 29.
The cut in CRR is set to release primary liquidity of about Rs 2.5 trillion into the banking system by December 2025.
Historically, CRR — the amount of cash that banks need to keep with
