Crr

Keep calm and an eye on the rupee as liquidity turns deficit

November will see about Rs 1.2 trillion of liquidity infusion from remainder of the CRR cut

Do we have enough positives to brace global uncertainty? | Beyond Averages

After the stellar growth numbers on May 30, followed by an emphatic GST collection data, RBI last week delivered another positive surprise with a 50-bps rate cut. With a record dividend providing government room to spend on capex, and tax cuts helping urban demand, will RBI cuts provide further boost to the economy. More important, can India keep its tryst with destiny to become a developed country by 2047 or does it risk falling into a middle-income trap? Watch Ishaan Gera in conversation with Rajnish Gupta, Partner, Tax and Economic Policy Group, EY India and Paras Jasrai, associate director, India Ratings and Research.

Banks said to have asked RBI to lower daily cash reserve rule

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.

Chart of the Day | How banks' CRR liability evolved in the flexible inflation targeting era

Data shows that the FIT era freed up funds for banks enabling them to use this for productive lending purposes

Why the 50 bps CRR cut may not move the needle

If banks don’t respond to the CRR cut by passing on the excess liquidity to the borrowers through cheaper loans, the ball will be back in the RBI’s court to offer a growth stimulus post the disappointing Q2 numbers.

CRR cut: Durable liquidity to shield FII uncertainties, say experts

Some experts believe that the durable liquidity will also enable banks to enhance lending to various sectors and improve net interest income.

RBI cuts CRR by 50 basis points, to be cut in two tranches of 25 bps each

This is the second time that RBI has reduced cash reserve ratio in four years. In March 2020, CRR was reduced from 4 per cent to 3 per cent to infuse liquidity in the system

RBI MPC meet: Kotak Equities bats for liquidity boost with 50 bps CRR cut amid growth concerns

Kotak recommends a staggered 50-bps CRR cut at the upcoming RBI MPC meet, which would inject approximately Rs 1.2 lakh crore of liquidity, signaling the start of a monetary easing cycle.