The Reserve Bank of India (RBI) has announced its plan to discontinue the incremental Cash Reserve Ratio (CRR) in a phased manner, with completion expected by October 7. The incremental CRR was introduced as a temporary measure to absorb excess liquidity in the banking system. This move signals the RBI’s confidence in maintaining liquidity stability and reflects a positive economic outlook. The phased withdrawal of the incremental CRR is expected to provide banks with more flexibility in managing their reserves and could potentially lead to increased lending capacity. This development aligns with the RBI’s ongoing efforts to support economic recovery while ensuring financial stability within the country’s banking system.
RBI to Phase Out Incremental Cash Reserve Ratio by October 7
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