RBI watchers call for a CRR hike to support OMOs
The RBI has calendarized its VRRR auction and stands ready to enhance its duration. This is the first sign of preparing the market for an eventual increase in the reverse repo rate.
Feedback on banking licence terms may be given to RBI in a fortnight
The repo rate has come down by 75 basis points to 4.4 per cent, while the reverse repo rate has been lowered by 90 basis points to 4 per cent now
This means that banks will not be needed to make additional cash reserve ratio against any incremental loans disbursed to the targeted segments
Is it time to review the need to maintain CRR funds with the central bank?