{"id":259364,"date":"2023-09-09T18:46:21","date_gmt":"2023-09-09T13:16:21","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=259364"},"modified":"2023-10-08T11:59:17","modified_gmt":"2023-10-08T06:29:17","slug":"rbi-decides-to-discontinue-i-crr-in-a-phased-manner","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/rbi-decides-to-discontinue-i-crr-in-a-phased-manner\/","title":{"rendered":"RBI decides to discontinue I-CRR in a phased manner"},"content":{"rendered":"\n<p><b>Source: <\/b><span style=\"font-weight: 400;\">The post is based on the article <\/span><b>\u201cRBI decides to discontinue I-CRR<\/b> <b>in a phased manner\u201d<\/b><span style=\"font-weight: 400;\"> published in <\/span><b>The Hindu on 9th September 2023<\/b><\/p>\n<h2><b>What is the News?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The Reserve Bank of India (RBI) has announced that it would <\/span><b>discontinue the incremental cash reserve ratio (I-CRR)<\/b><span style=\"font-weight: 400;\"> in a phased manner.\u00a0<\/span><\/p>\n<h2><b>What is the Incremental cash reserve ratio (I-CRR)?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">I-CRR is an additional cash balance which the RBI can ask banks to maintain over and above the Cash Reserve Ratio(CRR).<\/span><\/p>\n<p><b>Note:<\/b><span style=\"font-weight: 400;\"> Cash Reserve Ratio (CRR) is the minimum amount of the total deposits which banks have to maintain as cash reserves with the Reserve Bank of India.It is an essential tool to maintain the health of the banking system.Banks cannot use this amount for lending or for any investment purposes.<\/span><\/p>\n<h2><b>Why was Incremental cash reserve ratio (I-CRR) introduced?<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">The I-CRR was introduced on August 10, 2023 by RBI.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">I-CRR was announced as a temporary measure to absorb excess liquidity from the banking system.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The level of surplus liquidity in the system surged because of the return of Rs 2,000 banknotes to the banking system.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">RBI\u2019s surplus transfer to the government also led to increase in government spending and capital inflows.<\/span><\/p>\n<p><b>Note: <\/b><span style=\"font-weight: 400;\">Last time, RBI imposed the I-CRR was in November 2016 to absorb a part of the surplus liquidity in the system following the demonetization of Rs 500 and Rs 1,000 banknotes on November 8, 2016.It was later discontinued from the fortnight beginning December 10, 2016.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Source: The post is based on the article \u201cRBI decides to discontinue I-CRR in a phased manner\u201d published in The Hindu on 9th September 2023 What is the News? The Reserve Bank of India (RBI) has announced that it would discontinue the incremental cash reserve ratio (I-CRR) in a phased manner.\u00a0 What is the Incremental&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/rbi-decides-to-discontinue-i-crr-in-a-phased-manner\/\">Continue reading <span class=\"screen-reader-text\">RBI decides to discontinue I-CRR in a phased manner<\/span><\/a><\/p>\n","protected":false},"author":10317,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1566,3127,9],"tags":[11872,10498],"class_list":["post-259364","post","type-post","status-publish","format-standard","hentry","category-daily-factly-articles","category-economy","category-public","tag-9pm-daily-factly","tag-the-hindu","entry"],"jetpack_featured_media_url":"","views":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/259364","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10317"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=259364"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/259364\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=259364"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=259364"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=259364"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}