APN News

RBI cuts CRR by 75 bps to 4.75%

Mumbai : The Reserve Bank of India today cut the Cash Reserve Ratio, CRR, by 0.75 percentage points, from 5.5 percent, to 4.75 percent, in order to ease tight liquidity in the banking system. The Cash Reserve Ratio is the percentage of their deposits that banks are required to hold in the form of cash with the apex bank. The move, which comes into effect from tomorrow, will inject around 48,000 crore rupees into the economy. The RBI’s move comes less than a week ahead of its mid-quarter policy review on March 15.

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