RBI slashes CRR by 0.75%

Business News: The Reserve Bank of India (RBI) slashed the cash reserve ratio (CRR)by 0.75 per cent to 4.75 per cent from 5.5 per cent. The move will help to infuse around Rs.48,000 crore into Indian economy.

The infusion of money into the economy would help to address the inflationary pressure, which is high due to less velocity of funds in the country. The CRR is the portion of deposits that banks need to keep with the apex bank.

The low CRR will also help the banks for having higher liquidity into the market, which ultimately will have greater impact on the economy.