At present, the CRR, or the amount of money a bank has to compulsorily keep with the RBI, stands at 4 per cent of a bank’s total deposit. A cut in the CRR are among the options the RBI could explore to improve liquidity, a finance ministry official said on Tuesday. However, cutting the CRR will make money, and a lot of it, available for fresh lending. Industrial credit grew near 0.3 per cent in July and food credit grew 0.3 per cent. Overall, non-food credit grew 10.6 per cent, but this was on account of service sector credit rising 23 per cent.

Source: The Telegraph September 25, 2018 21:45 UTC