Banking

  ??? ??????  PRESS RELEASE  ??????  ??? ??  ?????  ????, ?? ? ??????, ??.??.??.???, ??????400001  ____________________________________________________________ _________________________________________________________   RESERVE BANK OF INDIA   DEPARTMENT OF COMMUNICATION,  of import Office, S.B.S.Marg, Mumbai?400001  ???/Phone: 91 22 2266 0502 ? ?/Fax: 91 22 22660358  ?        : www.rbi.org.in/hindi  Website : www.rbi.org.in  ????? email: helpdoc@rbi.org.in  ???????   marching 9, 2012 RBI Announces Reduction in the CRR Monetary/Liquidity Measures It has been decided to: reduce the capital assist ratio (CRR) of scheduled banks by 75 basis points from 5.5 per cent to 4.75 per cent of their net demand and time liabilities (NDTL) effective the fortnight beginning March 10, 2012. This reduction will inject loaded to `480 one million million of first liquid into the banking system. In arti culate to ebb down tight fluidity conditions, the cash reserve ratio was chuck out down by 50 basis points in the tierce thread Review (TQR) of January 2012, injecting primary liquidity of `315 billion into the banking system.

The seize bank building also continued with the open securities industry operations (OMOs), injecting primary liquidity of over `1,245 billion this financial year so far, of which `528 billion was injected after the TQR. Despite these measures, the liquidity deficit has remained broad on account of both structural and frictional factors. This was reflected in the net comely borrow ing low the Reserve Banks liquidity adjustm! ent facility (LAF) rising from an average of `1,292 billion in January 2012 to `1,405 billion in February. Net jibe of liquidity done LAF rose to a peak of `1,917 billion on March 1, 2012, though subsequently it declined to `1,273 billion on March 7, 2012. Further, the liquidity deficit is expected to increase significantly during the second calendar week of March due to arouse tax outflows and the usual frontloading of cash balances by banks with...If you want to define a full essay, order it on our website: OrderCustomPaper.com

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