On Saturday, Reserve Bank of India (RBI) has announced about its release on 25% of the amount of I-CRR maintained by banks.
According to the sources, The Reserve Bank of India (RBI) will discontinue the incremental cash reserve ratio (I-CRR) in a phased manner beginning Saturday I.e. today and another 25% on September 23.
Earlier, RBI had imposed I-CRR on banks to absorb surplus liquidity following the withdrawal of Rs 2,000 currency notes.
The notice said, “On a review, it has been decided to discontinue the I-CRR in a phased manner,” the RBI said in a statement. “Based on an assessment of current and evolving liquidity conditions, it has been decided that the amounts impounded under the I-CRR would be released in stages so that system liquidity is not subjected to sudden shocks and money markets function in an orderly manner.”
