Business
RBI raises banks' cash reserve ratio to 99% effective immediately
The Reserve Bank of India has revised the minimum daily cash reserve requirement for scheduled banks from 90% to 99%, with the new rule taking effect today.
The Reserve Bank of India (RBI) announced a tightening of the cash reserve ratio (CRR) for scheduled banks, raising the minimum daily cash reserve requirement from 90% to 99%. The new regulation comes into force today, according to the central bank.
Under the revised rule, banks must maintain a higher proportion of their deposits as cash reserves, which could affect their liquidity management and lending capacity. The change reflects the RBI's effort to strengthen the banking sector's resilience.
The RBI stated that the adjustment is part of its ongoing regulatory oversight to ensure financial stability across the banking system.
Under the revised rule, banks must maintain a higher proportion of their deposits as cash reserves, which could affect their liquidity management and lending capacity. The change reflects the RBI's effort to strengthen the banking sector's resilience.
The RBI stated that the adjustment is part of its ongoing regulatory oversight to ensure financial stability across the banking system.