A Question Of Timing

....Chaudhuri may have raised a fair question — whether the current level of CRR is too high — but his logic (and timing) may be flawed. The statutory minimum for CRR is 3 per cent, and the RBI Act does not have any provisions for paying interest on balances, though in a December 2003 report on another policy instrument, the liquidity adjustment facility, the RBI discussed the need for a change in the statute to lower it below 3 per cent, or pay interest on balances......

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