RBI MPC meet: Central bank brings in ‘temporary’ ICRR to balance liquidity
1 year, 4 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 the increase in their net demand and time liabilities between May 19, 2023 and July 28, 2023. Even after this temporary impounding, there will be adequate liquidity in the system to meet the credit needs of the economy,” said RBI Governor Shaktikanta Das. I must add that the existing cash reserve ratio remains unchanged at 4.5 percent,” added RBI policy statement.

Central Bank Liquidity Crr Rbi Mpc Policy Rbi  temporary  policy  rbi  mpc  central  bank  ratio  reserve  2023  banks  surplus  balance  system  brings  cash  liquidity  meet  icrr

History of this topic

DC Edit | RBI still cautious, but cuts CRR
2 weeks, 3 days ago

DC Edit | RBI still cautious, but cuts CRR

Deccan Chronicle  

The RBI-led Monetary Policy Committee continued its cautious approach by keeping the repo rate unchanged for the 11th time. The central bank has also allowed small finance banks to extend credit lines through UPI, which typically target borrowers of small ticket size loans. Lower middle class, which is said to be badly hit by low wage growth, will benefit from …

RBI cuts CRR to 4 pc; will unlock ₹1.16 lakh cr bank funds
2 weeks, 4 days 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 to Announce Interest Rate Decision Amid High Inflation
2 weeks, 4 days 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
2 weeks, 4 days 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 reduces CRR to 4% for liquidity boost. 3 things to know
2 weeks, 4 days 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 …

RBI Inquiries on Liquidity Spur Speculation of Action Next Week
3 weeks, 4 days ago

RBI Inquiries on Liquidity Spur Speculation of Action Next Week

Live Mint  

-- India’s central bank has stepped up dialogue with traders at treasury desks this week about cash conditions in the banking system, according to people with knowledge of the matter, spurring speculation it may announce some measures to boost liquidity at the policy review on Dec. 6. Banks turned net borrowers from the central bank this week compared with a …

RBI decides to discontinue I-CRR in a phased manner
1 year, 3 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, 4 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 MPC Meeting: Here are key takeaways from RBI policy decision
1 year, 4 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 …

Deposit of ₹2000 notes, rise in RBI dividends to improve short-term liquidity
1 year, 6 months ago

Deposit of ₹2000 notes, rise in RBI dividends to improve short-term liquidity

Live Mint  

There will be an improvement in short-term liquidity due to an increase in RBI dividends and deposit of ₹2,000 notes by banks till September, predicts India Ratings in its latest edition of the monthly credit market tracking report. The report highlighted that the Banking system liquidity declined as of 25 May 2023 to around ₹500 billion on average. “Decline in …

Monetary Policy will be watched for liquidity guidance
2 years, 2 months ago

Monetary Policy will be watched for liquidity guidance

Live Mint  

Of late, Indian fixed income markets are witnessing heightened nervousness due to many factors. The banking system’s liquidity slipped into deficit after 40 months on 21 September, led by advance tax outflows for the second quarter and payments for government bonds. Out of the total gross borrowings of ₹14.31 trillion, the government raised ₹7.72 trillion smoothly until 16 September, thanks …

A Mint poll says this is what RBI is likely to do this week
2 years, 6 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 to Restore Cash Reserve Ratio in Two Phases to 4 Pc
3 years, 10 months 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 …

Focus on surplus liquidity with rate cut seen remote
4 years ago

Focus on surplus liquidity with rate cut seen remote

Live Mint  

With the Reserve Bank of India expected to maintain status quo on benchmark rates in the monetary policy review on Friday, expert opinion is divided on whether the time is ripe for the central bank to absorb surplus liquidity. According to estimates, there is currently ₹5.31 trillion excess liquidity in the banking system following a series of steps by the …

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