RBI provided banks a
slight breather by announcing a 25 bps cut in the Cash Reserve Ratio (the
proportion of cash maintained with the regulator by banks.) But the repo or
other key rates are kept unchanged.
The CRR will be now at
4.50 per cent while the repo rate will continue to be at 8 per cent. These
changes are effective from the fortnight beginning September 22, 2012.
As a consequence of
this move, about Rs 17,000 crore of liquidity will be injected into the banking
system.
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