India slashes reserve ratio by 150 basis points

The Reserve Bank of India on Friday lowered its reserve requirement ratio by 150 basis points in a bid to ease liquidity tensions brought on by the global turmoil.

The Reserve Bank said on Monday that it would cut the ratio by 50 basis points to 8.5% as of Saturday. But the institution said that such a lowering was no longer sufficient owing to events of the last few days and that it would cut to 7.5% instead.

The move was expected to release Rs60,000 crore ($12 billion) into the system. The

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