Cash Reserve Ratio (CRR) – Last year on 27.03.2020, RBI, vide its circular DOR.No.Ret.BC.49/12.01.001/2019-20, reduced the Cash Reserve Ratio of all banks by 100 basis points from 4.00 per cent to 3.00 per cent of their Net Demand and Time Liabilities (NDTL) with effect from the reporting fortnight beginning 28th March 2020 for a period of one year, i.e up to 26th March 2021
Accordingly, all the banks have been maintaining only 3.00 per cent of their Net Demand and Time Liabilities (NDTL) as CRR from 28.03.2020. As this offer is going to end on 26.03.2021, RBI, vide its Statement on Developmental and Regulatory Policies dated 5th February 2021 has been decided to gradually restore the CRR in two phases in a non-disruptive manner.
Accordingly, banks are required to maintain the CRR at
- 3.50 per cent of their NDTL effective from the reporting fortnight beginning 27th March 2021, and
- 4.00 per cent of their NDTL effective from fortnight beginning 22nd May 2021