Is Cash Reserve Ratio a national waste?

.....the system of CRR which gives no interest to banks on these deposits makes banks suffer financial loss. Let the CRR be an effective tool for monetary policy, but what is the harm in passing some of the earnings made by RBI on these CRR deposits? Else let us abolish this system. After all, there is no harm in regulator learning from regulated ones. While CRR may not be a national waste, it is indeed a drain on the resources of banks which is obtained from public........

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