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RBI may raise CRR again

The Reserve Bank of India (RBI) may hike the cash reserve ratio (CRR) by another 50 basis points in 2007 to suck out funds pumped in by its intervention in the currency market

Apnaloan.com Research Bureau

15 Aug 2007

The Reserve Bank of India (RBI) may hike the cash reserve ratio (CRR) by another 50 basis points in 2007 to suck out funds pumped in by its intervention in the currency market, said Singapore based DBS bank Limited in a report. CRR is the amount that banks need to keep with the RBI, earning very little as interest. This forces banks to increase apnapaisa.com/loan/home-loan-india/rates.html" id="a280" style="font-family: Verdana;" target="_blank" title="\"Click" here="" to="" get="" the="" best="" home="" loan="" rates="" in="" india\="">interest rate on loans.

The RBI raised the CRR to 7 per cent from 6.5 per cent in July 2007-the highest since November 2001.