RBI cuts Cash Reserve Ratio to avert Global meltdown impact

The meltdown of global markets on Monday is the big factor for RBI of change the Cash Reserve Ratio (CRR). This time the RBI has cut the CRR by 50 basis points. This will help the liquidity of the money in the market and the lending capacity of banks would be higher. It is very difficult to control impact of global markets meltdown on India market and economy. Keeping the scenario, RBI has cut the CRR but couple months back the same was raised to ease the inflation. Everyone is talking about the global market crisis and seems in India people are least bothered about the inflation. The cut in the CRR will help banks to recover from the crisis but it unpredictable as how this will have impact on the inflation in India.