RBI Report Highlights Food Inflation as Sole Threat to 4% CPI Target
The Reserve Bank of India (RBI) has unveiled a plan to gradually discontinue the Incremental Cash Reserve Ratio (I-CRR) in response to evolving liquidity conditions. This strategic move aims to ensure that the financial system remains stable and money markets operate smoothly.
The RBI has outlined a phased release of the I-CRR funds. On September 9, 25% of the I-CRR will be released, followed by another 25% on September 23. The remaining 50% of the I-CRR will be released on October 7.
The RBI Governor, Shaktikanta Das, introduced the I-CRR, mandating all scheduled banks to maintain a 10% reserve ratio on the increase in their net demand and time liabilities (NDTL) between May 19, 2023, and July 28, 2023. The objective was to absorb surplus liquidity stemming from various factors, including the reintroduction of ₹2,000 notes into the banking system.
Governor Das emphasized that the I-CRR was always intended as a “temporary measure” to address the liquidity surplus. The net impact of this incremental CRR, according to the RBI’s internal calculations, amounted to slightly over ₹1 lakh crore.
This phased discontinuation of the I-CRR is a significant development in India’s monetary policy, aiming to maintain financial stability and manage liquidity in a controlled manner.
The Union Cabinet has approved the strategic stake sale of IDBI Bank to Canada Inc.…
On October 14, 2026, fourteen-year-old British photographer Oscar Whitfield was named the Young Wildlife Photographer…
The Wholesale Price Index inflation for India climbed to 11.39% in September 2026, as compared…
The ratification of the agreement between India and Russia regarding temporary employment will help to…
The Thermal Infra-Red Imaging Satellite for High-resolution Natural Resource Assessment (TRISHNA) is an international Earth…
India is one of the seven nations that want to host the Summer Olympic Games…