The Reserve Bank of India on Friday raised the ratio of reserves it requires banks to hold in its coffers in a bid to temper price pressures.
The Reserve Bank raised its cash reserve ratio by 75 basis points to 5.75%. The measure is expected to drain Rs36,000 crore ($7.8 billion) from the banking system.
Both the repo and reverse repo rates remain unchanged at 4.75% and 3.25% respectively.
The bulk of analysts forecast a half-point hike after the Reserve Bank flagged the danger that high food in