RBI hikes CRR by 0.5%
In an effort to contain inflation expectations and suck out excess liquidity from the banking system, RBI on Tuesday hiked cash reserve ratio (CRR) by 0.5 per cent in two stages. This is the second instance in the last three months that the apex bank has raised CRR, the amount of money that commercial banks are required to park with RBI, to curb excess liquidity.
