For Quick Alerts
For Daily Alerts

Bankers seek 0.5% CRR cut from RBI in May

By Religare

Bankers have asked a 0.5per cent cut in the cash reserve ratio (CRR) from Reserve bank of India (RBI) to tide over the tight liquidity situation and aid dwindling investments.

Bankers have also asked for a review of the elevated provisioning requirements.

At present, CRR is 4 per cent, after the 25 bps cut in the January policy, while the short-term lending (repo) rate is at 7.5 per cent.

A CRR cut would make monetary transmission faster as a mere repo cut would not help them slash their lending rates due to high cost of deposits.


All leading banks recently increased their term rates to attract deposits, the growth of which has been below the RBI target of 15-16 per cent.

Read more about: crr cut bankers
Company Search
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more