Tuesday, February 11, 2020

RBI relaxes norms on CRR

Reserve Bank of India says that banks would not be required to maintain the cash reserve ratio (CRR) for five years on their deposits for an amount equivalent to loans given to the MSME, housing and vehicles sectors between January 31 and July 31.

Banks currently maintain 4 per cent on their deposits as CRR.

In the monetary policy, the RBI said it would allow relaxations on this for loans given to the three productive sectors as they could have “multiplier effects to support growth impulses.

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