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RBI Raises CRR By 50 Basis Points To 4.5% Beginning May 21

The decision was announced by RBI Governor Shaktikanta Das after an off-cycle meeting of the rate-setting panel -- Monetary Policy Committee (MPC).

The Reserve Bank on Wednesday announced a hike in cash reserve ratio (CRR) by 50 basis points to 4.5 per cent, effective May 21, which will take out Rs 87,000 crore liquidity from the system.

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The decision was announced by RBI Governor Shaktikanta Das after an off-cycle meeting of the rate-setting panel -- Monetary Policy Committee (MPC).

CRR is a percentage of a bank's total deposits that it needs to maintain as liquid cash. 

The MPC also decided to raise the repo rate or the short-term lending rate by 40 basis points to 4.4 per cent. 

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