September 9, 2023 9:18 AM

RBI to discontinue Incremental Cash Reserve Ratio, put in place to absorb surplus liquidity after withdrawal of 2,000 rupees notes, in a phased manner

The Reserve Bank of India (RBI) decided to discontinue the Incremental Cash Reserve Ratio (I-CRR), which was put in place to absorb surplus liquidity following the withdrawal of 2,000 rupees currency notes, in a phased manner beginning today. On August 10, the RBI mandated banks to maintain an incremental cash reserve ratio (I-CRR) of 10 per cent on the increase in their net demand and time liabilities (NDTL) between May 19, 2023 and July 28, 2023. The measure was intended to absorb the surp...