RBI has announced additional measures to contain exchange rate volatility and rupee slide. In a notification issued in Mumbai today, the apex bank has increased the amount of Cash Reserve Ratio – CRR that the banks are required to maintain with the RBI on an average daily basis.

Effective from 27th July, banks will be required to maintain a minimum daily CRR balance of 99 percent of the requirement instead of the current 70 percent.

Moreover, RBI has capped the total quantum of funds available to a bank under Liquidity Adjustment Facility at 0.50 percent of the individual bank’s Net Demand and Time Liabilities – NDTL. Withdrawing its earlier cap of 1.0 per cent of NDTL, reckoned as Rs 75,000 crore, RBI has said that from tomorrow onwards, NDTL would be the same as being reckoned for the purpose of maintenance of CRR during a reporting fortnight.

RBI has also said that the measures announced earlier have had a restraining effect on rupee volatility and a stabilising effect on the exchange rate.