Business Standard
What is Cash Reserve Ratio (CRR)?

Cash Reserve Ratio

About Cash Reserve Ratio

What is Cash Reserve Ratio (CRR)?

Cash Reserve Ratio

Under cash reserve ratio (CRR), the commercial banks have to hold a certain minimum amount of deposit as reserves with the central bank. The percentage of cash required to be kept in reserves as against the bank's total deposits, is called the Cash Reserve Ratio. The cash reserve is either stored in the bank’s vault or is sent to the RBI. Banks can’t lend the CRR money to corporates or individual borrowers, banks can’t use that money for investment purposes. And Banks don’t earn any interest on that money.

Why do banks have to reserve cash with RBI?

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Latest Updates on Cash Reserve Ratio

Punjab & Sind Bank plans to raise Rs 3,000 cr from infra bonds this month

Asked about the timing of fundraise, he said, it would be tentatively in the third week of this month. The base issue size is going to be Rs 500 crore, with a greenshoe option of Rs 2,500 crore

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Updated On : 12 Dec 2024 | 11:55 AM IST
Updated On : 06 Dec 2024 | 11:47 PM IST

RBI slashes Cash Reserve Ratio to 4%: What it means for banks and you

RBI governor Shaktikanta Das said that the CRR reduction will release Rs 1.16 trillion into the banking system, providing additional liquidity and enable banks to extend more loans

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Updated On : 06 Dec 2024 | 12:02 PM IST

RBI MPC Updates: Shaktikanta Das headlines inflation, says no room for knee-jerk reactions

RBI Monetary Policy Meeting Dec 2024 Updates: Catch all the updates here

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Updated On : 06 Dec 2024 | 4:08 PM IST

RBI set to announce decision on key interest rate on Dec 6 at 10 am

Experts are of the view that the central bank is likely to opt for status quo on the short-term lending rate (repo), and will possibly tinker with cash reserve ratio (CRR)

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Updated On : 05 Dec 2024 | 7:35 PM IST

Share markets rise on expectations of CRR cut by RBI later this week

The NSE Nifty 50 climbed 0.32 per cent to 24,534.65 points, as of 11:02 a.m. IST, while the BSE Sensex gained 0.37 per cent to 81,145.54

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Updated On : 04 Dec 2024 | 5:10 PM IST

Money in the bank: Debate over cash reserve ratio's utility grows

Indians are flocking to invest in stocks, putting pressure on banks which need to strike a balance between deposits and loans

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Updated On : 06 Oct 2024 | 9:15 PM IST

SBI raises Rs 10,000 crore at a coupon of 7.36% in 15-year infra bonds

Several other state-owned lenders such as Canara Bank and Bank of India are also planning to raise funds through infrastructure bonds

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Updated On : 10 Jul 2024 | 9:46 PM IST

Lenders seek better terms to increase green and sustainable financing

According to current norms, for Rs 10,000 crore of loans, banks have to ensure Rs 4,000 crore of priority sector lending target

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Updated On : 14 Jun 2024 | 11:43 PM IST

Many faces of OMO

The OMO sale is quite an innovative way to address the concerns around currency

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Updated On : 22 Oct 2023 | 7:05 PM IST

Banking liquidity remains in deficit after I-CRR disbursement's 2nd tranche

RBI had decided on September 8 to discontinue the I-CRR by October 7, in a phased manner

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Updated On : 25 Sep 2023 | 7:39 PM IST

Advance tax payments push the banking system liquidity into deficit

"The estimates are that around Rs 90,000 crore to Rs 1 trillion will go out as goods and services tax (GST) outflow," a dealer at a primary dealership said

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Updated On : 18 Sep 2023 | 11:43 PM IST

Lenders likely to hike deposit rates up to 25 bps this festival season

Only those with asset-liability management mismatch would consider upward rate revisions

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Updated On : 11 Sep 2023 | 9:36 PM IST

Overnight index swap rates at 10-month high; government bond yields rise

One-year swap rate has jumped 13 bps so far in September, whereas the five-year swap rate has jumped 19 bps

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Updated On : 11 Sep 2023 | 9:32 PM IST

India's OIS rates hit nine-month high, government bond yields rise

The one-year swap rate hit 7.10 per cent on Monday, the highest level since March 9, while the five-year swap rate rose to 6.85 per cent, a level last seen on November 9, 2022

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Updated On : 11 Sep 2023 | 7:34 PM IST

RBI decides to withdraw incremental CRR by Oct 7 in phased manner

Net impact of incremental CRR was estimated to be little more than Rs 1 trn

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Updated On : 08 Sep 2023 | 9:26 PM IST

RBI to discontinue incremental cash reserve ratio in a phased manner

The amounts impounded under the I-CRR will be released in stages so that system liquidity is not subjected to sudden shocks and money markets function in an orderly fashion

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Updated On : 08 Sep 2023 | 3:04 PM IST

India bond yields end flat as all eyes on RBI's I-CRR review this week

The I-CRR could be reduced to 5%-8% in a phased manner from the current 10%, treasury officials have said

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Updated On : 06 Sep 2023 | 10:35 PM IST

RBI may extend incremental cash reserve ratio with tweaks: Bankers

"The I-CRR is acting as an indirect rate hike and, at best, the RBI could lower the limit taking into consideration tax outflows," a senior treasury official at a private bank said

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Updated On : 06 Sep 2023 | 11:03 AM IST

Maruti Suzuki to invest Rs 45,000 crore to double capacity in 8 years

Targets 4 mn annual output; new CFO to take charge on Jan 1

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Updated On : 29 Aug 2023 | 11:25 PM IST