| | NEWS FLASH
| The Reserve Bank of India (RBI) cut its key rate by 0.25 per cent in a bid to avoid any liquidity pressure on the banking industry. However, it kept its benchmark repo-rate unchanged. The move comes after a spate of long-delayed reforms unleashed by India to shore up government finances.
The CRR stipulates the minimum proportion of deposits that banks must hold with the central bank. When the RBI increases the CRR, banks have fewer funds to lend or invest since they have to park more money with the RBI. | |
| |
No comments:
Post a Comment