RBI cuts CRR by 0.25%, releases Rs 17,000 cr liquidity

Taking a cautious stance, the Reserve Bank on Monday cut CRR by 0.25 per cent - the percentage of deposits banks keep with central bank - but refrained from reducing lending rates in view of high inflation.

The RBI decision, which comes days after a slew of measures taken by the government to push growth, will release Rs 17,000 crore of primary liquidity into the system.

The liquidity infusion, RBI said, would ensure adequate flow of credit to productive sectors of the economy.

(Times Of India)