Banking

  ??? ??????  PRESS RELEASE  ??????  ??? ??  ?????  ????, ?? ? ??????, ??.??.??.???, ??????400001  ____________________________________________________________ _________________________________________________________   RESERVE BANK OF INDIA   DEPARTMENT OF COMMUNICATION,  of trade 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 back off ratio (CRR) of scheduled banks by 75 basis points from 5.5 per penny to 4.75 per cent of their net demand and time liabilities (NDTL) effective the two weeks beginning March 10, 2012. This reduction will inject belt up to `480 one thousand thousand of first liquid into the banking system. In articulate to fall back tight fluidity conditions, the cash reserve ratio was concussion down by 50 basis points in the triplet thread Review (TQR) of January 2012, injecting primary liquid state of `315 billion into the banking system.

The check bank building also continued with the open mart operations (OMOs), injecting primary liquidity of over `1,245 billion this fiscal 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 morphologic and frictional factors. This was reflected in the net middling borrowing c hthonian 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 gibe 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 importantly during the second calendar week of March due to bring in tax outflows and the usual frontloading of cash balances by banks with...If you want to feel a full essay, order it on our website: OrderCustomPaper.com

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