RBI says to withdraw temporary cash reserve ratio hike

By: | Published: December 7, 2016 3:12 PM

India's central bank said on Wednesday it would withdraw the temporary 100 percent hike in the cash reserve ratio announced late last month that was intended to absorb the extra liquidity created after the country banned higher-value notes.

India's central bank said on Wednesday it would withdraw the temporary 100 percent hike in the cash reserve ratio announced late last month that was intended to absorb the extra liquidity created after the country banned higher-value notes. (PTI)India’s central bank said on Wednesday it would withdraw the temporary 100 percent hike in the cash reserve ratio announced late last month that was intended to absorb the extra liquidity created after the country banned higher-value notes. (PTI)

India’s central bank said on Wednesday it would withdraw the temporary 100 percent hike in the cash reserve ratio announced late last month that was intended to absorb the extra liquidity created after the country banned higher-value notes.

The withdrawal will start in the fortnight beginning Dec. 10, the Reserve Bank of India said in a statement.

The RBI temporarily hiked the CRR to 100 percent as banks were awash with deposits as people turned in their abolished notes, but said the measure was no longer needed after the government agreed to issue special bonds to absorb the liquidity.

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