Existing laws don’t allow interest on CRR: Chakrabarty

......Explaining the rationale behind the regulatory mandate, the Deputy Governor, who looks after banking supervision, apart from a host of other departments at the central bank, said the CRR is charged on banks because only they can create money. “Who creates money?...It’s only bank deposits that too chequeable deposits or demand deposits that create money. That’s why CRR is imposed only on banks...if a bank gives money to NBFCs, it will go not to NBFC but to some bank accounts (of NBFCs),” Chakrabarty, who recently got a two-year extension, said........

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