Indian cash reserve ratio increase

The Reserve Bank of India, the country's central bank, today left its key interest rates - the repurchase rate and the reverse repurchase rate - unchanged at 7.75% and 6% respectively, but increased the cash reserve ratio.

The cash reserve ratio, which represents the proportion of deposits that must be held in cash deposits by commercial banks, was raised from 6.5% to 7%. The Reserve Bank also removed an existing cap on the money it can take from the banking system

In a statement accompanying t