RBI CRR

RBI cuts Indian banks' reserve ratios

The Reserve Bank of India surprises markets with a 75bp reduction in the cash reserve ratio ahead of a key policy meeting this week.
<div style="text-align: left;">
RBI's cash reserve ratio is at its lowest level since 2004 (AFP)
</div>
<div style="text-align: left;"> RBI's cash reserve ratio is at its lowest level since 2004 (AFP) </div>

In a surprising move, the Reserve Bank of India (RBI) reduced its cash reserve ratio (CRR) by 75bp after market hours on Friday, cutting it to 4 75% from 5 5%, effective today

Consensus expectations were for a 50bp reduction ahead of the key March 15 policy meeting, and total cuts of 100bp for the whole of this year

It was the first time the RBI had cut the CRR — the level of deposits banks have to set aside — outside of a policy meeting since July 2010 It last cut the ratio by 50bp on January 24, and it is now at the lowest level since 2004

The RBI...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222