Incremental Cash Reserve Ratio (ICRR)

On 10th August, 2023, the Reserve Bank of India (RBI) asked banks to maintain an incremental Cash Reserve Ratio (ICRR) of 10 per cent on the increase in net demand and time liabilities (NDTL) of banks between May 19 and July 28, 2023.

The move aims to manage the higher surplus liquidity sloshing about in the economy following the return of Rs. 2,000 notes to the banking system (after they were withdrawn from circulation).

  • Banks are mandated to maintain a certain proportion of their deposits and specific liabilities as liquid cash with the RBI, which is called as Cash Reserve Ratio ....
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