Existing laws dont allow interest on CRR: Chakrabarty

Written by Press Trust of India | Mumbai | Updated: Dec 11 2012, 06:06am hrs
The Reserve Bank of India (RBI) can pay interest to banks on their cash reserve (CRR) deposits if the laws are changed, senior-most deputy governor Kamalesh Chandra Chakrabarty has said.

Under the present law, I cant pay interest on the CRR...that modification came four-five years back...The government should change the rule (for payment of interest on CRR), Chakrabarty said in an interaction at his office.

If the CRR is a cost on banks, then they can adjustthat somewhere else, he added.