Current CRR (Cash Reserve Ratio)
On January 29, 2013, RBI announced to reduce the cash reserve ratioThe Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India, with reference to the ..... (CRR) of scheduled banks by 25 basisIn a futures market, basis is defined as the cash price (or spot price) of whatever is being traded minus its futures price for the ..... points from 4.25 per cent to 4.0 per cent of their net demand and time liabilitiesAny claim for money against the assets of a company, such as bills of creditors, income tax payable, debenture redemption, interest on secured and unsecured ..... (NDTL). This rate is effective from the fortnight beginning February 9, 2013. The objective of this move is to inject primary liquidity of around Rs. 180 billion into the banking system.
What is CRR?
The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve Bank of IndiaThe Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the Reserve Bank of India Act, 1934 with ....., with reference to the demand and time liabilities (NDTL) to ensure the liquidity and solvency of the Banks. Please note that earlier RBI was empowered to fix RBI between 3-20% by notification. However, from 2006 onwards the RBI is empowered to fix the CRR on its discretion without any ceiling. The CRR is maintained fortnightly average basis.