Q. What does “I” stand in I-CRR stand for?
Answer:
Incremental
Notes: The Reserve Bank of India (RBI) has recently announced the phased discontinuation of the Incremental Cash Reserve Ratio (I-CRR), which was introduced on August 10, 2023.
The I-CRR was implemented to absorb surplus liquidity caused by various factors, including the return of Rs 2,000 notes to the banking system. The RBI aims to release I-CRR funds gradually to avoid shocks to system liquidity and ensure orderly money market functioning.