RBI to restore the cash reserve ratio in two phases to 4%

CRR will go up from 3 per cent to 3.5 per cent effective from March 27, and to 4 per cent effective from May 22

Incentivising Bank Credit to Specific Sectors – Exemption from CRR Maintenance & FAQ on CRR Exemptions

RBI allowed the banks to deduct the equivalent amount of incremental credit disbursed by them as retail loans to automobiles, residential housing, and loans to micro, small and medium enterprises (MSMEs), over and above the outstanding level of credit to these segments as at the end of the fortnight ended January 31, 2020 from their net demand and time liabilities (NDTL) for maintenance of the cash reserve ratio (CRR).