New Delhi, Mar 9 (ANI): The Reserve Bank of India (RBI) on Friday announced 0.75 percentage points cut in its Cash Reserve Ratio (CRR) in a bid to provide liquidity in the market, which is expected to release Rs 48,000 crores into the economy.
Without waiting for the scheduled policy review due next week, RBI reduced the CRR-the portion of deposits banks require to keep with the central bank from 5.5 per cent to 4.75 per cent.
The central bank in January had reduced CRR by 0.5 percentage points, releasing Rs 32,000 crore liquidity.
These measures, according to the central bank, are aimed at addressing "the liquidity deficit (which) is expected to increase significantly during the second week of March on account of to advance tax outflows and the usual front-loading of cash balances by banks with the Reserve Bank". (ANI)
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