RBI to Restore Cash Reserve Ratio in Two Phases to 4 Pc
4 years, 1 month ago

RBI to Restore Cash Reserve Ratio in Two Phases to 4 Pc

News 18  

The Reserve Bank on Friday decided to restore the cash reserve ratio in a phased manner to 4 per cent in light of improved liquidity condition in the market. To help banks tide over the disruption caused by COVID-19, the CRR of all banks was reduced by 100 basis points to 3.0 per cent of net demand and time liabilities effective from the reporting fortnight beginning March 28, 2020. Banks would now be required to maintain the CRR at 3.5 per cent of NDTL effective from the reporting fortnight beginning March 27, 2021 and 4.0 per cent of NDTL effective from fortnight beginning May 22, 2021,” RBI Governor Shaktikanta Das said. RBI on March 27, 2020 allowed banks to avail funds under the marginal standing facility by dipping into the Statutory Liquidity Ratio up to an additional one per cent of net demand and time liabilities, i.e., cumulatively up to 3 per cent of NDTL.

Liquidity Cent Rbi Banks Crr Ndtl  rbi  fortnight  cash  pc  restore  decided  cent  liquidity  crr  ndtl  banks  2021  effective  ratio  reserve  phases

History of this topic

Key takeaways from the RBI’s monetary policy committee conference
Trending News
1 month, 1 week ago

Key takeaways from the RBI’s monetary policy committee conference

Live Mint  

The Reserve Bank of India's monetary policy committee on Friday cut the key policy interest rate by 25 basis points to 6.25% to support growth. At a post-policy press conference, new RBI governor Sanjay Malhotra spoke on a range of issues such as implementation of the proposed guidelines on liquidity coverage ratio, working with the government on various recommendations, geopolitical …

Indian banks’ liquidity crunch is partly RBI’s own doing
1 month, 2 weeks ago

Indian banks’ liquidity crunch is partly RBI’s own doing

Live Mint  

The chickens are coming home to roost. In July 2024, RBI had suggested that banks assign an additional 5% ‘run-off factor’—broadly, the portion of deposits kept handy to cover a surge in withdrawals—for retail deposits that can be accessed via internet and mobile banking. One, in accordance with the Basel III framework of the Basel Committee on Banking Supervision, banks …

Indian Banks Said to Ask RBI to Delay April Liquidity Rule
1 month, 3 weeks ago

Indian Banks Said to Ask RBI to Delay April Liquidity Rule

Live Mint  

-- Some of India’s largest lenders are planning to request concessions from the new head of the nation’s central bank regarding proposed liquidity regulations, arguing the rules could hamper efforts to boost lending, according to people familiar with the developments. To be sure, the RBI did cut the cash reserve ratio — the proportion of deposits that banks must set …

CRR cut may boost bank margins, but tight liquidity challenges persist: Report
3 months ago

CRR cut may boost bank margins, but tight liquidity challenges persist: Report

Live Mint  

As widely anticipated, the Reserve Bank of India in its December Monetary Policy Committee meeting announced a 50-basis-point cut in the Cash Reserve Ratio to enhance liquidity in the banking system. While the CRR cut may not immediately influence deposit and lending rates, it is anticipated to boost bank margins, according to SBI Research. SBI pointed out that the expected …

RBI MPC Dec 2024: Central Bank Slashes CRR By 50 Bps, Here's What It Means
3 months, 1 week ago

RBI MPC Dec 2024: Central Bank Slashes CRR By 50 Bps, Here's What It Means

ABP News  

The Reserve Bank of India’s Monetary Policy Committee on Friday announced a reduction in the Cash Reserve Ratio by 50 basis points. Kaushal Agarwal, Co-Founder and Director, The Guardians Real Estate Advisory stated, "The RBI's decision to keep the repo rate unchanged and lower the CRR shows strategic efforts to balance more cash flow with inflation control. Reducing the CRR …

RBI MPC Dec 2024: Repo Rate Remains Unchanged, CRR Slashed; Here's What The Experts Have To Say
3 months, 1 week ago

RBI MPC Dec 2024: Repo Rate Remains Unchanged, CRR Slashed; Here's What The Experts Have To Say

ABP News  

The Reserve Bank of India’s Monetary Policy Committee on Friday kept the status quo on key interest rates and decided to keep the repo rate unchanged at 6.5 per cent. Kaushal Agarwal, co-founder and director, The Guardians Real Estate Advisory noted, “The RBI's decision to keep the repo rate unchanged and lower the CRR shows strategic efforts to balance more …

RBI cuts CRR to 4 pc; will unlock ₹1.16 lakh cr bank funds
3 months, 1 week ago

RBI cuts CRR to 4 pc; will unlock ₹1.16 lakh cr bank funds

Live Mint  

Mumbai, Dec 6 To ease the potential liquidity stress, the Reserve Bank on Friday slashed Cash Reserve Ratio by 50 basis points to 4 per cent, a move that would unlock ₹1.16 lakh crore bank funds. The RBI on May 4, 2022 had raised CRR to 4.5 per cent from 4 per cent in an off-cycle Monetary Policy Committee meeting, …

RBI Policy Outcome: RBI cuts cash reserve ratio by 50 bps to 4%
3 months, 1 week ago

RBI Policy Outcome: RBI cuts cash reserve ratio by 50 bps to 4%

Live Mint  

RBI Monetary Policy: The Reserve Bank of India on Friday, December 6 as part of its policy decision decided to cut the cash reserve ratio by 50 basis points to 4%. This move is likely to ease liquidity conditions The cash reserve ratio is the percentage of deposits that banks are required to hold as cash. CRR cut of 50 …

RBI to Announce Interest Rate Decision Amid High Inflation
3 months, 1 week ago

RBI to Announce Interest Rate Decision Amid High Inflation

Deccan Chronicle  

The Reserve Bank on Friday morning will announce the decision on interest rate after the conclusion of the three-day monetary policy panel meeting, amid high inflation and weak GDP growth numbers.Experts are of the view that the central bank is likely to opt for status quo on the short-term lending rate, and will possibly tinker with cash reserve ratio keeping …

What is Cash Reserve Ratio? Understanding RBI's liquidity management tool
3 months, 1 week ago

What is Cash Reserve Ratio? Understanding RBI's liquidity management tool

India Today  

The Reserve Bank of India announced its bi-monthly monetary policy for FY25 on On December 6, 2024. The Cash Reserve Ratio is the percentage of a bank's public deposits that it must maintain as cash reserves with the RBI. During periods of high inflation, the RBI increases the CRR to limit the funds available for lending, which helps reduce excess …

RBI cuts CRR to 4%: How this liquidity boost will benefit economy
3 months, 1 week ago

RBI cuts CRR to 4%: How this liquidity boost will benefit economy

India Today  

The Reserve Bank of India announced a phased reduction in the Cash Reserve Ratio by 50 basis points, lowering it to 4%. This adjustment, effective in two tranches on December 14 and 28, is expected to release approximately Rs 1.16 lakh crore into the banking system, easing liquidity constraints and supporting credit growth. Considering all these factors, we believe that …

Lower GDP forecast to CRR boost: 6 key takeaways from RBI MPC
3 months, 1 week ago

Lower GDP forecast to CRR boost: 6 key takeaways from RBI MPC

India Today  

The Reserve Bank of India’s Monetary Policy Committee has decided to keep the key lending rates unchanged for the 11th consecutive time since February 2023. LOWER GDP GROWTH PROJECTIONS The Reserve Bank has slightly reduced its real GDP growth forecast for 2024-25, projecting it at 6.6%. Quarterly projections for GDP growth are as follows: Q3 of 2024-25: 6.8% Q4 of …

RBI reduces CRR to 4% for liquidity boost. 3 things to know
3 months, 1 week ago

RBI reduces CRR to 4% for liquidity boost. 3 things to know

India Today  

The Reserve Bank of India's Monetary Policy Committee has reduced the cash reserve ratio to 4% from 4.5% to address liquidity woes, announced Governor Shaktikanta Das. RBI Governor Shaktikanta Das said that lowering the Cash Reserve Ratio is consistent with the central bank's neutral policy stance. “A CRR cut would inject liquidity into the banking system, providing a cushion for …

CRR cut in focus at RBI MPC meet: What it means for the economy
Trending News
3 months, 1 week ago

CRR cut in focus at RBI MPC meet: What it means for the economy

India Today  

The Reserve Bank of India’s Monetary Policy Committee, led by Governor Shaktikanta Das, is set to announce its decisions on December 6. While there is uncertainty over a repo rate cut due to inflationary pressures and slowing economic growth, many experts are urging the central bank to consider a reduction in the Cash Reserve Ratio. With India’s GDP growth slowing …

Central Bank's new framework can shave 10-30 percentage points off bank LCRs
7 months, 2 weeks ago

Central Bank's new framework can shave 10-30 percentage points off bank LCRs

New Indian Express  

MUMBAI: The proposed higher mark-ups that the Reserve Bank is seeking from banks in the draft liquidity coverage ratio framework will impact the LCRs by 10-30 percentage points, thus reducing the cushion now available with banks over the regulatory requirement of 100 percent such ratio. In an analysis of 31 banks, Crisil ratings shows aid the near-term impact on credit …

SBI in talks with RBI to lower cash reserve ratio requirement on green deposits
1 year ago

SBI in talks with RBI to lower cash reserve ratio requirement on green deposits

The Hindu  

State Bank of India chairman Dinesh Khara on February 16 said the nation's largest lender is in talks with the Reserve Bank to reduce the cash reserve ratio requirement on green deposits. State Bank of India last month announced a green deposit scheme, a first in the domestic banking, to attract long-term retail deposits to be used only to fund …

RBI decides to discontinue I-CRR in a phased manner
1 year, 6 months ago

RBI decides to discontinue I-CRR in a phased manner

The Hindu  

The Reserve Bank of India has decided to discontinue the incremental Cash Reserve Ratio in a phased manner. “Based on an assessment of current and evolving liquidity conditions, it has been decided that the amounts impounded under the I-CRR would be released in stages so that system liquidity is not subjected to sudden shocks and money markets function in an …

MPC holds rates, raises FY24 inflation forecast to 5.4%; retains GDP growth projection at 6.5%
1 year, 7 months ago

MPC holds rates, raises FY24 inflation forecast to 5.4%; retains GDP growth projection at 6.5%

The Hindu  

The Monetary Policy Committee of the Reserve Bank of India on Thursday decided unanimously to keep the policy repo rate unchanged at 6.5% even as it raised the projection for retail inflation in the current fiscal year by 30 basis points to 5.4%. “Headline inflation, after reaching a low of 4.3% in May 2023, rose in June and is expected …

RBI’s incremental CRR decision spooks banking stocks; Nifty Bank falls over 1%
1 year, 7 months ago

RBI’s incremental CRR decision spooks banking stocks; Nifty Bank falls over 1%

Live Mint  

The Reserve Bank of India Governor Shaktikanta Das in his monetary policy statement on Thursday announced that all scheduled banks will have to maintain a 10% incremental cash reserve ratio from August 12. Liquidity surplus in the banking system has averaged around ₹2.5 lakh crore in August, up from ₹1.6 lakh crore in July, pushing down overnight borrowing and lending …

RBI MPC Meeting: Here are key takeaways from RBI policy decision
1 year, 7 months ago

RBI MPC Meeting: Here are key takeaways from RBI policy decision

Live Mint  

On expected lines, the Reserve Bank of India chose to keep policy rates and stance unchanged on Thursday despite the recent spike in food inflation and a rate hike by the US Fed in July. Shaktikanta Das led the monetary policy committee unanimously decided to keep the repo rate unchanged at 6.50 per cent for the third straight meeting in …

RBI MPC meet: Central bank brings in ‘temporary’ ICRR to balance liquidity
1 year, 7 months ago

RBI MPC meet: Central bank brings in ‘temporary’ ICRR to balance liquidity

Live Mint  

RBI monetary policy: RBI Governor Shaktikanta Das on Thursday said in his monetary policy that banks will have to maintain an incremental cash reserve ratio of 10 percent with effect from August 12. “It has been decided that with effect from the fortnight beginning August 12, 2023, scheduled banks shall maintain an incremental cash reserve ratio of 10 percent on …

A Mint poll says this is what RBI is likely to do this week
2 years, 9 months ago

A Mint poll says this is what RBI is likely to do this week

Live Mint  

MUMBAI : The Reserve Bank of India, determined to tame inflation, may raise the repo rate by a steep 50 basis points and increase the cash reserve ratio at its meeting this week, according to a Mint poll of economists. The central bank’s monetary policy committee will meet from 6 to 8 June, following an off-cycle hike in repo rate …

RBI Raises Repo Rate By 40 Basis Points To 4.40 Per Cent To Check Inflation
2 years, 10 months ago

RBI Raises Repo Rate By 40 Basis Points To 4.40 Per Cent To Check Inflation

ABP News  

New Delhi: In an unscheduled policy review meeting of its Monetary Policy Committee, the Reserve Bank of India on Wednesday hiked the policy repo rate under the liquidity adjustment facility by 40 basis points to 4.40 per cent to contain inflation with immediate effect. According to the RBI statement, the standing deposit facility rate consequently stands adjusted to 4.15 per …

RBI hikes interest rate by 40 basis points to 4.40%, CRR to 4.50% in unscheduled policy review
2 years, 10 months ago

RBI hikes interest rate by 40 basis points to 4.40%, CRR to 4.50% in unscheduled policy review

India TV News  

Highlights This is the first-rate hike by the RBI since August 2018 The next meeting of the MPC is scheduled during June 6-8 Das said that MPC voted unanimously to maintain an accommodative stance The Reserve Bank of India on Wednesday announced to hike the repo rate by 40 basis points and cash reserve ratio by 50 basis points in …

RBI to ensure adequate liquidity in system; cuts reverse repo rate by 25 basis points
4 years, 10 months ago

RBI to ensure adequate liquidity in system; cuts reverse repo rate by 25 basis points

The Hindu  

In a move to ease financial stress and to maintain adequate liquidity in the system, the Reserve Bank of India has announced several steps on Friday including targeted long term repo operations and providing special refinance to financial institutions like NABARD, SIDBI and National Housing Bank. “It has been decided to conduct targeted long-term repo operations for an aggregate amount …

Liquidity floodgates opened
4 years, 11 months ago

Liquidity floodgates opened

The Hindu  

In a move to infuse sufficient liquidity into the banking system, the Reserve Bank of India has reduced the cash reserve ratio requirement by 100 bps, increased the cap for liquidity available under the marginal standing facility, and will auction long-term repo of ₹1 lakh crore. “This measure should provide comfort to the banking system by allowing it to avail …

RBI cuts rates, allows moratorium on auto, home loan EMIs
4 years, 11 months ago

RBI cuts rates, allows moratorium on auto, home loan EMIs

The Hindu  

The Reserve Bank of India has opened up the liquidity floodgates for banks even as it reduced the key interest rate sharply by 75 bps and allowed equated monthly instalments to be deferred by three months in a move to fight the economic impact of the countrywide lockdown to check the spread of novel coronavirus. Apart from cutting the repo …

Good News! You Home Loan, Car Loan EMIs May Get Cheaper Despite No Rate Cut By RBI; Know How
5 years, 1 month ago

Good News! You Home Loan, Car Loan EMIs May Get Cheaper Despite No Rate Cut By RBI; Know How

ABP News  

Even though the Reserve Bank of India on Thursday kept its repo rate unchanged at 5.15 per cent in the Monetary Policy Meeting, the announcement will make loans to home, automobile and small businesses cheaper. Even though the government said that the move was aimed in view of the uptick in inflation, maintaining a status quo will help the Central …

RBI announces incentive for lending to MSME, home, auto sectors
5 years, 1 month ago

RBI announces incentive for lending to MSME, home, auto sectors

India TV News  

In a bid to increase lending to MSME as well as to auto and home segment, Reserve Bank on Thursday tweaked maintenance of cash reserve ratio norms by providing relaxation in calculation of total deposits. "As a part of this, it has now been decided that scheduled commercial banks will be allowed to deduct the equivalent of incremental credit disbursed …

Urjit Patel makes a statement with his CRR remark
6 years, 3 months ago

Urjit Patel makes a statement with his CRR remark

The Hindu  

At the press conference post the fifth monetary policy review on December 5, Reserve Bank of India Governor Urjit Patel brushed aside a question on reduction in cash reserve ratio saying that it is not in the ambit of the Monetary Policy Committee. There are two other statements in the press conference which are seen as Mr Patel attempting to …

RBI eases cash reserve rules to ease liquidity
6 years, 5 months ago

RBI eases cash reserve rules to ease liquidity

India TV News  

The Reserve Bank of India on Thursday allowed banks to dip further into statutory cash reserves in a bid to ease a liquidity squeeze afflicting the nation's money markets. RBI in a statement said banks could 'carve out' up to 15 per cent of holdings under the statutory liquidity reserves to meet their liquidity coverage ratio requirements as compared to …

Reserve Bank of India eases cash reserve rules to ease liquidity; banks can 'carve out' up to 15 percent of holdings
6 years, 5 months ago

Reserve Bank of India eases cash reserve rules to ease liquidity; banks can 'carve out' up to 15 percent of holdings

Firstpost  

The move by the central bank follows concerns over tight liquidity conditions and banks’ unwillingness to lend to NBFCs. Mumbai: The Reserve Bank of India Thursday allowed banks to dip further into statutory cash reserves in a bid to ease a liquidity squeeze afflicting the nation’s money markets. RBI in a statement said banks could ‘carve out’ up to 15 …

What is CRR or cash reserve ratio?
6 years, 8 months ago

What is CRR or cash reserve ratio?

India Today  

Cash Reserve Ratio is a certain minimum amount of deposit that the commercial banks have to hold as reserves with the central bank. CRR is set according to the guidelines of the central bank of a country. Cash reserve ratio is: It is also referred to as the amount of funds which the banks have to keep with the Reserve …

Demonetisation: RBI eases cash balance requirement for banks
8 years, 3 months ago

Demonetisation: RBI eases cash balance requirement for banks

India TV News  

The Reserve Bank of India today permitted banks to include now defunct Rs 500 and 1,000 notes as part of their cash balance, a move that may provide relief to banks. In the wake of deposits of Specified Bank Notes in massive quantity, it has been decided that SBNs deposited in the currency chests, since November 10, 2016 will be …

RBI stipulates additional CRR to suck out surplus liquidity
8 years, 3 months ago

RBI stipulates additional CRR to suck out surplus liquidity

Hindustan Times  

Banks will have to park the entire incremental deposits they get from the money inflow in the form of deposits through deposit of old currency notes after the demonetisation move announcement. On Saturday, the Reserve Bank asked banks to maintain an incremental CRR of 100% starting November 26, 2016. “This is intended to absorb a part of the surplus liquidity …

RBI cuts key lending rate by 25 basis points
8 years, 11 months ago

RBI cuts key lending rate by 25 basis points

ABP News  

Mumbai: India's central bank on Tuesday cut its key lending rate by 25 basis points in line with overall expectations, comforted by the central government's fiscal prudence steps, a cut in interest rates on small savings rates and moderate inflation. The repurchase rate, or the short-term lending rate for commercial banks on loans taken from the central bank, stands lowered …

RBI lowers repo rate to 7.25 per cent
9 years, 9 months ago

RBI lowers repo rate to 7.25 per cent

The Hindu  

The Reserve Bank of India in its second bi-monthly policy announced on Tuesday has reduced the policy repo rate under the liquidity adjustment facility by 25 basis points from 7.5 per cent to 7.25 per cent with immediate effect. It has decided to continue to provide liquidity under overnight repos at 0.25 per cent of bankwise NDTL at the LAF …

RBI cuts SLR by 50 basis points to provide liquidity
10 years, 1 month ago

RBI cuts SLR by 50 basis points to provide liquidity

The Hindu  

In an attempt to provide more liquidity to the banking system, the Reserve Bank of India, on Tuesday, reduced the Statutory Liquidity Ratio by 50 basis points to 21.50 per cent from 22 per cent with effect from February 7. However, the RBI kept the short-term policy rate unchanged at 7.75 per cent, which the central bank had reduced by …

RBI keeps key rate unchanged
10 years, 1 month ago

RBI keeps key rate unchanged

The Hindu  

The Reserve Bank of India has decided to keep the policy Repo rate under the liquidity adjustment facility unchanged at 7.75 per cent. Consequent to these decision, the reverse Repo rate under the LAF will remain unchanged at 6.75 per cent, and the marginal standing facility rate and the Bank Rate at 8.75 per cent. Watch video: RBI holds interest …

RBI keeps interest rates unchanged
10 years, 3 months ago

RBI keeps interest rates unchanged

The Hindu  

The Reserve Bank of India on Tuesday kept the short-term indicative policy rate unchanged at 8 per cent, as the current economic environment is not conducive to cut rates. The central bank also indicated that a change in the monetary policy stance is likely early next calendar year, “including outside the policy review cycle.” “A change in the monetary policy …

RBI relaxation to help banks meet Jan 2015 LCR target: Crisil
10 years, 5 months ago

RBI relaxation to help banks meet Jan 2015 LCR target: Crisil

India TV News  

Mumbai: A recent revision in liquidity guidelines under the Basel-III framework by RBI will help lenders meet the 60 per cent liquidity coverage ratio threshold set for January 2015, ratings agency Crisil said today. He added that the revision in rules by the RBI will help most of the banks achieve the January 2015 target of upping their respective LCRs …

RBI unlikely to cut policy rate
10 years, 5 months ago

RBI unlikely to cut policy rate

The Hindu  

While the Reserve Bank of India is likely to maintain its policy rate at current levels, the financial markets expect that the central bank would reduce the Statutory Liquidity Ratio further. In the June bi-monthly policy also, the central bank had cut SLR by 50 basis points from 23 per cent to 22.5 per cent. “We do not expect any …

RBI leaves rates unchanged
11 years, 2 months ago

RBI leaves rates unchanged

The Hindu  

Surprising the markets, the Reserve Bank of India, on Wednesday, kept the indicative policy rates and cash reserve ratio unchanged. “Even though the Reserve Bank maintains status quo today…if the expected softening of food inflation does not materialise…or if inflation excluding food and fuel does not fall, the Reserve Bank will act, including on off-policy dates if warranted, so that …

CRR, SLR could come down further: Subbarao
11 years, 7 months ago

CRR, SLR could come down further: Subbarao

The Hindu  

Outgoing RBI Governor D. Subbarao, who had disagreed with the bankers’ call to further trim the cash reserve ratio or pay interest on these deposits and cut SLR, on Tuesday said “perhaps” there is a need to reduce these rates. Describing CRR as “dead money”, SBI Chairman Pratip Chaudhuri had earlier said that if RBI could not reduce this requirement …

CRR, SLR could come down further: D. Subbarao
11 years, 7 months ago

CRR, SLR could come down further: D. Subbarao

India TV News  

New Delhi: Outgoing RBI Governor D Subbarao, who had disagreed with bankers' call to further trim the cash reserve ratio or pay interest on these deposits, and cut SLR, today said "perhaps" there is a need to reduce these rates. "I do recognise that there is a demand, and perhaps a need, for further reduction," he told the FIBAC summit, …

RBI policy review: highlights
11 years, 7 months ago

RBI policy review: highlights

The Hindu  

Resisting intense pressures from many quarters, the Reserve Bank of India has decided to keep the key policy rates unchanged. The RBI, on Tuesday, decided on the following: - To keep the repo rate under the liquidity adjustment facility unchanged at 7.25 per cent. - The reverse repo rate under the LAF, determined with a spread of 100 basis points …

Reserve Bank leaves rates unchanged, warns of inflation risk
11 years, 8 months ago

Reserve Bank leaves rates unchanged, warns of inflation risk

The Hindu  

The Reserve Bank of India, on Monday, kept its policy rates unchanged. The RBI had cut the CRR in the last one-and-a-half years by 200 basis points from a peak of 6 per cent, and it had cut the repo rate by 125 basis points till May 3, from a high of 8.50 per cent, in the last one year. …

RBI keeps interest rate, CRR unchanged
11 years, 8 months ago

RBI keeps interest rate, CRR unchanged

The Hindu  

Reserve Bank on Monday kept the key interest rates unchanged citing elevated food inflation, rupee depreciation and uncertainty over foreign fund inflows. “The monetary policy stance has been informed by the evolving growth-inflation dynamics, the balance of risks as well as recent developments in the external sector,” RBI Governor D Subbarao said in the mid-quarter policy review. He specifically cited …

The dilemma remains
12 years, 1 month ago

The dilemma remains

The Hindu  

The monetary measures announced by the Reserve Bank of India in its third quarter review of monetary policy are entirely in line with market expectations. As before, the RBI is hedging its bets: on the expectation of inflation remaining range bound at current levels, there is space, albeit limited, for monetary policy to place greater emphasis on growth, it says. …

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