RBI Tightens CRR Maintenance Norms for Banks to 99 Percent
· Business · Zee News, Moneycontrol, Economic Times
The Reserve Bank of India has raised the mandatory Cash Reserve Ratio maintenance norm for commercial banks from 90 percent to 99 percent. Under the revised notification, banks must now maintain 99 percent of their prescribed CRR on a daily basis. The change significantly curtails the ability of lenders to draw down reserve balances on individual days. The measure aims to manage liquidity tighter across the banking system.
Why it matters
The tighter daily reserve requirement reduces liquidity buffers for commercial banks and could influence short-term borrowing costs in the money market.
Read the original report — Zee News
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