The Reserve Bank of India (RBI) has announced an increase in the daily cash reserve ratio (CRR) requirement for banks, which will take effect on October 16. The current CRR is 90 per cent and will be raised to 99 per cent.
In a recent announcement, the Reserve Bank of India (RBI) has mandated that banks will need to maintain a higher daily cash reserve ratio (CRR), effective from October 16. The current CRR stands at 90 per cent, which will be raised to 99 per cent. This decision follows a review of the liquidity condition in the banking system, as reported by Akashvani News on October 8.
According to the announcement, the increased CRR is expected to help reduce the banking system's excess liquidity, which was approximately 3.88 lakh crore rupees as of October 8.
Source:
Akashvani News
