Cash Reserve Ratio

The cash reserve ratio currently stands at 4% of deposits, which needs to be reported by banks to the Reserve Bank of India on a fortnightly basis. Banks set aside 90% of this requirement daily at present.

CRR cut is the first step to monetary easing

Half-a-percentage point reduction in cash reserve ratio will influence bond yields. The average repo rate over the last decade has been 6-6.5 percent. A new cycle could begin with cuts of 25-75 basis points, subject to the inflation trajectory

MPC balances prudence and practicality amid divergent growth inflation dynamics

If no new risks emerge that derail the moderation in inflation to the projected 4.0% by Q2 FY2026, a repo cut in February 2025 could very well be on the table.

Weak growth numbers make strong case for RBI to cut CRR in Dec MPC meet

India’s GDP growth slumped to its lowest in seven quarters at 5.4 percent in the September quarter, data released on November 30 shows

HDFC-HDFC Bank merger: Why RBI clarification comes as a relief for the banking giant

More time to comply with PSL requirements takes away the immediate burden from the bank. Similarly, clarity on holdings in investments and subsidiaries will clear air for investors.

RBI steps may tighten banking system liquidity to pre-pandemic levels by March 2023, say experts

RBI’s resolve to combat high inflation and aggressive measures to reduce pandemic-era stimulus could take the banking system liquidity surplus to around Rs 4 lakh crore rupees by March 2023

Policy statement shows RBI has managed a good balancing act

In the current scenario, where the liquidity is awash, the RBI has effectively increased the rates without touching the repo rate by narrowing the policy corridor.

Not just about interest rates, Urjit's RBI policy had plenty of action

In a nutshell, the RBI is hawkish on inflation, bullish on growth, proactive on liquidity management and serious about non-performing assets (NPA) resolution.

Monetary Policy: RBI may cut rates by 25 bps; CPI target keenly watched

All eyes will be on the Governor Urjit Patel's commentary on the inflation target and how he approaches the ultimate cpi goal of 4 percent.

RBI's CRR move to put monthly burden of Rs 1,050 cr on banks

"Excess CRR requirement will additionally cost the banking system Rs 1,050 crore on a monthly basis," India Ratings and Research said in a note here today.

RBI relaxes cash balance requirements for lenders

In a statement, the central bank said that all scrapped currency notes held in their chests will be counted as part of their cash balance.

5 things you must know about RBI's Market Stabilisation Scheme

The Reserve Bank has raised the cash deposit or reserve ratio limit for banks to contain liquidity surge post demonetisation. However, it has also assured it will revisit the limits once the government issues an adequate quantum of Market Stabilisation Scheme bonds. Here are 5 things you should know about MSS bonds and how they will help.

RBI applies demonetisation band-aid as it searches for remedies

RBI hiked the cash reserve ratio (CRR) over the weekend to 100 percent on the increase in net demand and time liabilities on cash accrued between September 16 and November 11. Normally, hiking CRR signals a tightening in lending rates, but that is the last thing the government or the central bank would like to do.

Demonetisation: One should expect 'good things' from Budget, says Goyal

Speaking to CNBC-TV18 from the sidelines of Pune Inc Conclave Power Minister Piyush Goyal said demonetisation has huge advantages. It will take India to digital banking and make it a cashless society.

See better buying opportunities in 1-2 months: Nilesh Shah

Nilesh Shah, MD, Kotak Mahindra AMC is confident that market will not move in a unidirectional manner but would remain volatile, adding that although he has not turned bearish on the market, he would focus more on ground realities.

Mkt stabilisation scheme, more than CRR, will bring relief:StanC

Speaking to CNBC-TV18 Ananth Narayan of Standard Chartered Bank said that the market will continue to remain in excess liquidity. Lack of credit offtake, economic slowdown in the quarter coupled with surplus deposits in banks will mean a soft corner for bonds, he said.

RBI announces measures to drain excess liquidity

With a move to managing the excess liquidity in the system banking regulator Reserve Bank of India announced today that it woujld absorb a part of this extra cash by applying an incremental cash reserve ratio (CRR) as a purely temporary measure.

Expert Views: RBI expectedly keeps policy rate unchanged

Reserve Bank of India (RBI) Governor Raghuram Rajan, who bows down next month, kept the repo rate unchanged at 6.50 percent at his final policy review on Tuesday after inflation hit a nearly two-year high.

RBI Policy: Governor Rajan keeps key rates unchanged

Reserve Bank Governor Raghuram Rajan kept key rates unchanged at his last policy review before he bids adieu early September.

RBI unlikely to change rates on Tuesday: CNBC-TV18 poll

Ahead of the Reserve Bank of India‘s monetary policy on Tuesday, a CNBC-TV18 poll shows that the outgoing RBI Governor Raghuram Rajan is unlikely to cut interest rate. Markets, however, are going to keep an eye out for the central bank‘s stance on liquidity.

Raghuram Rajan says looking for room to cut policy rate

The RBI left its policy rates unchanged, while cautiously signalling it could cut later this year if monsoon rains, and other factors, dampen upward pressure on food prices.

RBI may supply dollars during FCNR redemption

Raghuram Rajan said the outflow from the concessional swap facility to get foreign currency non-resident (bank), or FCNR (B) deposits could be USD20 billion.The RBI governor reiterated the central bank's commitment to supply short-term funds into the banking system and said the transmission of policy rate cuts remains a work in progress.

Transmission, not rate cuts, to drive growth, upgrade: Moody's

Despite favourable weather forecasts, India is not immune to the risk of a renewed rise in food prices, the Moody's note said. It highlighted a possible depreciation in the rupee arising from adverse global events as the other key risk to staying below the inflation target.

RBI retains retail inflation target at 5% with upward bias

Consumer Price Index (CPI) based retail inflation excluding food and fuel edged up in April. Services inflation also remained elevated on account of house rents, water charges, tuition fees and taxi/auto fares.

Risk to PSU banks‘ asset quality may stretch to FY17: Goldman

"We currently forecast stress loans to peak in FY16—but see risk to asset quality stretching into FY17 if the macro recovery continues to be elusive and commodity prices fall," says a report by Goldman Sachs.