Reserve Bank of India, RBI may slash CRR by 25 basis points soon, feel experts
With the last date for payment of advance tax drawing closer, pressure is mounting on the Reserve Bank to cut Cash Reserve Ratio (CRR) by at least 0.25 percentage points to improve liquidity in the system.
Bankers and analysts believe the RBI intervention may come anytime during the week as the payment of advance tax by companies will be due on December 15. This will result in substantial amount of money being sucked out from the market.
Such a move to lower CRR, which is the portion of deposit that banks are compulsorily required to keep with the central bank, will result in release of about Rs 15,000 crore into the system.
With the last date for payment of advance tax drawing closer, pressure is mounting on the Reserve Bank to cut Cash Reserve Ratio (CRR) by at least 0.25 percentage points to improve liquidity in the system.
Bankers and analysts believe the RBI intervention may come anytime during the week as the payment of advance tax by companies will be due on December 15. This will result in substantial amount of money being sucked out from the market.
Such a move to lower CRR, which is the portion of deposit that banks are compulsorily required to keep with the central bank, will result in release of about Rs 15,000 crore into the system.
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