Quote on RBI decision to discontinue the incremental cash reserve ratio (CRR) By Dr. Manoranjan Sharma, Infomerics Ratings
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Below Quote on RBI decision to discontinue the incremental cash reserve ratio (CRR) By Dr. Manoranjan Sharma, Chief Economist at Infomerics Ratings
The discontinuance of the I-CRR in a phased manner shows that the RBI is not behind the curve.
The imposition of the I-CRR was done at a time of consistent surplus liquidity in the banking and financial sectors. Now that this surplus liquidity has dissipated and the festival October-December season is approaching, this kind of course correction is welcome and contextually significant. This assumes greater significance in the light of the fact that historically, the liquidity gets squeezed in the October- December season.
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