Central Banking

RBI cuts reserve ratio to improve lending conditions


The Reserve Bank of India today (March 9) lowered the cash reserve ratio for scheduled banks by 75 basis points from 5.5% to 4.75%.

The central bank issued a circular to all the main commercial banks in the country announcing the reduction, which was made "on review of the current and evolving liquidity conditions" in India, according to the document.

The cut to the net demand and time liabilities of banks will take effect from the fortnight beginning March 10, 2012.

In a statement on the

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