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Incremental cash reserve ratio
September 15 , 2023
307 days
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- RBI announced is discontinuing the incremental cash reserve ratio (I-CRR) in a phased manner.
- RBI released 25% of the I-CRR maintained on September 9 and another 25% on September 23.
- The remaining 50% of the I-CRR maintained will be released on October 7.
- It aims to release I-CRR funds gradually to avoid shocks to system liquidity and ensure orderly money market functioning.
- The Cash Reserve Ratio (CRR) will remain at 4.5%.
- The CRR is a mandatory reserve amount that banks must maintain with the RBI.
- The I-CRR was introduced to absorb excess liquidity in the banking system, primarily caused by factors like the return of Rs 2,000 notes.
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