Incremental Cash Reserve Ratio (ICRR)

On 10th August, 2023, the Reserve Bank of India (RBI) asked banks to maintain an incremental Cash Reserve Ratio (ICRR) of 10 per cent on the increase in net demand and time liabilities (NDTL) of banks between May 19 and July 28, 2023.

  • Banks are required to maintain a portion of their deposits as liquid cash with the RBI, known as Cash Reserve Ratio (CRR).
  • This helps regulate liquidity and acts as a buffer during financial strain, aiming to control inflation.
  • Incremental CRR, similar to CRR, temporarily restricts banks' resources, impacting market rates.
  • Net Demand and Time Liabilities (NDTL) represent total ....
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