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The RBI temporarily hiked the CRR to 100% as banks were awash with deposits as people turned in their abolished notes. Photo: Mint
The RBI temporarily hiked the CRR to 100% as banks were awash with deposits as people turned in their abolished notes. Photo: Mint

RBI says to withdraw temporary CRR hike

RBI says the temporary cash reserve ratio (CRR) hike withdrawal will start in the fortnight beginning 10 December

Mumbai: The Reserve Bank of India said on Wednesday it would withdraw the temporary 100% hike in the cash reserve ratio announced late last month that was intended to absorb the extra liquidity created after the country banned higher-value notes.

The withdrawal will start in the fortnight beginning 10 December, the RBI said in a statement.

The RBI temporarily hiked the CRR to 100% as banks were awash with deposits as people turned in their abolished notes, but said the measure was no longer needed after the government agreed to issue special bonds to absorb the liquidity. Reuters

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