RBI surprises all with 75 bps CRR cut

Mumbai: Just a few days before the mid quarter monetary credit Policy, the Reserve Bank of India (RBI) on Friday surprised all by announcing a 75 bps cut in the Cash Reserve Ratio (CRR). The market was expecting a cut of 50 bps.

This move is expected to pump in Rs 48,000 crore liquidity support in the system.

In the last few weeks, banks were seen (net) borrowing more than Rs 1.50 lakh crore from the RBI's liquidity adjustment facility (LAF).

Posted in: Business