The Reserve Bank of India has cut the Cash Reserve Ratio (CRR) by 0.75% to bring it down to 4.75%. This, I think, is the lowest ever.
In order to mitigate tight liquidity conditions, the cash reserve ratio was reduced by 50 basis points in the Third Quarter Review (TQR) of January 2012, injecting primary liquidity of `315 billion into the banking system. The Reserve Bank also continued with the open market operations (OMOs), injecting primary liquidity of over `1,245 . . .