RBI cuts CRR by 100bps, repo rate by 50bps
Business Standard: RBI cuts CRR by 100bps, repo rate by 50bps
The one percentage point cut in CRR, the amount which banks have to park with the apex bank, has been brought down to 5.5% to infuse additional liquidity of Rs 40,000 cr into the system.
The RBI also cut the repo rate, the rate at which it lends to banks, by 0.5 per cent to 7.5% with effect from November 3.
Call money rates were above 20% - guess that spoilt the RBI’s Diwali weekend.
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