RBI Announces Incentives For Lending To Small Businesses, Housing, Auto Sectors | Read

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  • Published On: February 06, 2020
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The Reserve Bank of India (RBI) tweaked the cash reserve ratio (CRR) norms on Thursday in a bid to increase lending to micro, small and medium enterprises (MSMEs) as well as the auto and home segments. The move will encourage lending towards these sectors having a multiplier effect by banks as they will get exemption in the cash reserve ratio over incremental lending. Cash reserve ratio is the percentage of total deposits that commercial banks have to mandatorily park with the RBI.

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