Crr rate: The Reserve Bank of India (RBI)

The Reserve Bank of India (RBI) reduced the Cash Reserve Ratio ( CRR ) by 50bps to 4.0% at its December 2024 meeting, marking the first such reduction since April 2020 and defying market estimates... 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 ... Following the first tranche in September 2025, the CRR currently stands at 3.75%. This move aims to improve liquidity transmission, complementing previous monetary easing and the unchanged policy rates (Repo 5.50%, SDF 5.25%, MSF/Bank Rate 5.75%). 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 ...