....Till 2007, RBI could raise CRR to 20% and the floor was 3%. Now there is neither a floor nor a ceiling for CRR. RBI also stopped paying interest on CRR in 2007 when the rate was 3.5%. CRR is a monetary tool. RBI raises CRR to drain excess liquidity from the system when it wants to follow a tight money policy to rein in high inflation. Conversely, it cuts CRR to release money in banks’ coffers. This brings down the cost of money and makes more money available with banks to lend......
The very purpose of VITALINFO is to provide a platform for wider dissemination of updated information related to and happening of events in and around RBI.
No comments:
Post a Comment