On 8-9-2023, the Reserve Bank of India (‘RBI’) decides to discontinue the Incremental Cash Reserve Ration (‘I-CRR’) in a phased manner and start releasing the amount in stages so that the liquidity is not subjected to sudden shocks and money markets function properly.
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Release of Funds will be done as follows:
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9-9-2023- 25% of the I-CRR maintained
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23-9-2023- 25% of the I-CRR maintained
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7-10-2023- 50% of the I-CRR maintained
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RBI directed all the Scheduled Commercial Banks/ Regional Rural Banks and all Scheduled Primary (Urban) Co-operative Banks/ all Scheduled State Cooperative Banks to maintain an additional daily balance apart from the daily balance for the following fortnights:
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9-09-2022-2023: an additional average daily balance which should not be less than 7.5% of the increase in net demand and time liabilities between 19-5-2023, and 28-7-2023.
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23-09-2023 to 6-10-2023- an additional average daily balance which should not be less than 5.0% of the increase in net demand and time liabilities between 19-5-2023 and 28-7-2023.
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From 7-10-2023- NIL
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