.......... Many economists believe although liquidity is not a problem, RBI should cut banks’ Cash Reserve Ratio (CRR). However, some finance ministry officials say cutting the Statutory Liquidity Ratio (SLR) and increasing the use of open market operations (OMO) would be a better way to manage liquidity. The sector has not been hit by a liquidity crunch, but bankers their margins are under pressure and slashing CRR would be right in this environment...........
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