Crr rate: The Reserve Bank of India

The Reserve Bank of India kept the Cash Reserve Ratio ( CRR ) currently stands at 3.75%. Earlier in June, the central bank had announced a 100-basis-point reduction—from 4% to 3%—to be implemented in four phases of 25 basis points each, beginning September 2025. source: Reserve Bank of India The Reserve Bank of India (RBI) has taken significant steps to boost the economy by reducing both the Cash Reserve Ratio (CRR) and the repo rate . The CRR will be decreased in phases, injecting ₹2.5 lakh crore into the banking system. RBI cuts CRR by 100 bps to 3% in phased manner, to inject Rs 2.5 lakh crore liquidity into banking system Alongside the CRR cut, the Monetary Policy Committee (MPC) voted to reduce the repo rate ... Summary Definition: The Cash Reserve Ratio ( CRR ) is the percentage of a bank’s total deposits that must be held as reserves in cash with the Reserve Bank of India (RBI). Regulatory Tool: CRR is a critical monetary policy tool used by the RBI to regulate liquidity in the banking system and manage inflation. Impact on Liquidity: A higher CRR reduces the amount of funds available for banks to lend, thereby tightening liquidity; a lower CRR increases it, promoting lending and investment ...