....The Reserve Bank of India (Amendment) Act, 2006, gives discretion to the RBI to decide the percentage of scheduled banks’ demand and time liabilities to be maintained as CRR without any ceiling or floor. Consequent to the amendment, the Reserve Bank was also not required to make interest payment on CRR balances. Consequent to the amendment in June 2006, the RBI announced the removal of the floor of 3 per cent and ceiling of 20 per cent in respect of CRR. Thus, in an operational sense, there is no prescribed limit of CRR as in the past......
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