Current CRR (Cash Reserve Ratio)

On January 29, 2013, RBI announced to reduce the cash reserve ratio (CRR) of scheduled banks by 25 basis points from 4.25 per cent to 4.0 per cent of their net demand and time liabilities (NDTL). This rate is effective from the fortnight beginning February 9, 2013. The objective of this move is to inject primary liquidity of around Rs. 180 billion into the banking system.

What is CRR?

The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve Bank of India, with reference to the demand and time liabilities (NDTL) to ensure the liquidity and solvency of the Banks. Please note that earlier RBI was empowered to fix RBI between 3-20% by notification. However, from 2006 onwards the RBI is empowered to fix the CRR on its discretion without any ceiling. The CRR is maintained fortnightly average basis.


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  29. anish

    January 26, 2013 at 7:12 am

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  31. Dhananjay singh

    March 17, 2013 at 9:36 am

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  32. Illangi Babu

    June 18, 2013 at 8:47 am

    Dear GKToday team,
    Thank you very much for your wonderful efforts.
    Please update the following sentence:
    Please Note that earlier RBI was empowered to fix CRR (but not RBI as is there in sentence)between 3-20% by the notification.

    Thank you.

    Reply
  33. divya hegde

    January 14, 2015 at 12:41 pm

    very thankful to you i searching the meaning & current rates of SLR & CRR

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  34. Mouna ganapathi

    June 23, 2015 at 5:55 am

    That was very useful, but I was looking for a reason as to why is the rate 4% and not more or less. On what basis is the rate fixed?

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