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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

Banks want CRR, SLR, priority sector exemption for sovereign green bonds

Suggest green masala bond to attract foreign investors

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Updated On : 13 Jan 2023 | 9:30 AM IST

RBI imposes penalty of Rs 13.9 lakh on Mynd Solutions for non-compliance

Non-promoter shareholding in the company exceeded the 10% ceiling prescribed for TReDS operators

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Updated On : 29 Dec 2022 | 5:55 PM IST

ICICI Bank raises Rs 5,000 cr via infrastructure bonds for funding projects

The base issue size for ICICI Bank's infra bonds was Rs 1,000 crore with green shoe option of Rs 4,000 crore

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Updated On : 08 Dec 2022 | 10:49 PM IST

SBI's maiden infra bond issue for Rs 10,000 cr oversubscribed 3.27 times

10-year paper priced at 7.51%, or about 17 bps above benchmark g-sec yield

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Updated On : 02 Dec 2022 | 11:55 PM IST

SBI likely to raise Rs 10,000 crore through infrastructure bonds

The planned issuance worth Rs 10,000 crore includes a greenshoe option of Rs 5,000 crore, the bank said

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Updated On : 24 Nov 2022 | 10:34 PM IST

Banks can boost liquidity by drawing down on CRR: RBI governor Das

The fall in the liquidity surplus is owing to multiple factors, including the RBI's interventions in the forex market and a sharp pick-up in bank credit growth, which is currently at nine-year highs

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Updated On : 30 Sep 2022 | 11:01 PM IST

ICICI Bank to raise Rs 10,000 cr via infra bonds in one or more tranches

Proceeds to be used for project financing, affordable housing

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Updated On : 05 Sep 2022 | 12:42 AM IST

How the RBI is creating conditions for foreign flows to come back to India

The RBI announced five measures on July 6 to further liberalise foreign exchange. The measures are aimed at creating a more enabling environment to attract dollars through banking deposits, ECB, FPI

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Updated On : 13 Jul 2022 | 10:26 PM IST

SBI, ICICI Bank up interest rates on certain foreign currency bank deposits

According to SBI's website, the interest rate on US dollar category deposits with maturities up to 2 and 3 years are up by 85 basis points to 2.85 per cent and 3 per cent

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Updated On : 12 Jul 2022 | 11:15 PM IST

Ahead of inflation data, understanding how CPI is linked to RBI and markets

The Reserve Bank of India (RBI) hiked the benchmark interest rate, or repo rate, in May and then in June to control demand and liquidity in the economy, bringing CPI down

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Updated On : 12 Jul 2022 | 4:47 PM IST

RBI measures a step in right direction but forex inflows still seen limited

RBI announced five measures pertaining to the liberalisation of foreign exchange flows into India

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Updated On : 07 Jul 2022 | 12:56 AM IST

Shifting cycle

Investors should be prepared for further turmoil

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Updated On : 12 Jun 2022 | 10:25 PM IST

Policy signals calibrated tightening

During the gradual transition to a neutral stance, maybe over the next couple of months, liquidity management will play an important role in transitioning the WACR closer to the repo rate

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Updated On : 09 Jun 2022 | 3:17 AM IST

Macroeconomic adjustment

Risks for growth and asset prices have increased

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Updated On : 08 Jun 2022 | 10:16 PM IST

RBI monetary policy review: Further repo rate hikes clearly on the cards

The Governor's reminder that the repo rate is still below the pre-pandemic level served as a clear signal that more rate hikes lie ahead

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Updated On : 08 Jun 2022 | 1:02 PM IST

10-year G-Sec touches 7.5% ahead of RBI's monetary policy review

The yield jumped 4 basis points (bps) on Monday after Saudi Arabia - the world's biggest oil exporter - raised prices for Asian buyers

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Updated On : 07 Jun 2022 | 12:45 AM IST

RBI to hike repo rate by 50 bps, lower FY23 growth to 7% in June: Barclays

The central bank will likely revise its inflation estimate to 6.2-6.5 per cent, which is way above the upper end of its tolerance band of 2-6 per cent, the economists at Barclays said

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Updated On : 26 May 2022 | 11:40 PM IST

Will take a few quarters to move retail-wholesale mix back: HDFC Bank CFO

In a Q&A, Srinivasan Vaidyanathan says the lender expects to reduce employee turnover at the junior level with the introduction of RSUs

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Updated On : 24 May 2022 | 10:17 PM IST

Bond yields drop as RBI seen reversing Covid period rate cut

The yield on the 10-year benchmark government bond fell almost 9 bps to end the day at 7.21 per cent

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Updated On : 12 May 2022 | 1:24 AM IST

Course correction

RBI has been slow in withdrawing accommodation

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Updated On : 04 May 2022 | 10:16 PM IST