RBI further cuts CRR

November 1st, 2008 - 7:45 pm ICT by ANI  

New Delhi, Nov 1 (ANI): The Reserve Bank of India (RBI) on Saturday effected yet another 100 basis points cut in cash reserve ratio (CRR) and a 0.5 per cent reduction in key short-term lending repo rate, signaling softening of interest rates to prop up growth.
The CRR cut will be in two trenches and the first one of 0.5 per cent will be effective retrospectively from October 25 and the second from November 8.
The RBI also cut the repo rate, the rate at which it lends to banks, by 0.5 per cent to 7.5 per cent with effect from November 3.
The apex bank reduced the statutory liquidity ratio (SLR) as well, the amount which banks are mandated to park in government securities, by 100 basis points to 24 per cent.
Recently, the RBI has taken a slew of measures to prop up the economy. (ANI)

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