RBI announces to discontinue Incremental CRR in a phased manner
- In August 2023, RBI had advised scheduled banks to maintain an incremental cash reserve ratio (I-CRR) of 10 percent on the increase in their net demand and time liabilities (NDTL) between May 19, 2023 and July 28, 2023.
- This measure was aimed to absorb the surplus liquidity generated by various factors, including the return of ₹2000 notes to the banking system.
- Now RBI has decided to discontinue the I-CRR in a phased manner. The amounts impounded under the I-CRR would be released in stages as below:
|Date||Amount to be released (₹ crore)|
|September 9, 2023||25 per cent of the I-CRR maintained|
|September 23, 2023||25 per cent of the I-CRR maintained|
|October 7, 2023||50 per cent of the I-CRR maintained|