Repo Rate Cut by 75 Bps, Reverse Repo Rate Cut By 90 BPS, CRR Cut By 100 Bps
New Delhi: The Reserve Bank of India has cut the Repo Rate by a staggering 75 basis points from 5.15 percent to 4.4 percent. The Reverse Repo Rate has also been slashed by 90 basis points to 4 percent on the back of lowckdown across the country due to corona virus outbreak.
The Cash reserve Ration (CRR) has been cut by 100 basis points.
“Cash Reserve Ratio (CRR) of all banks have been reduced by 100 basis points to 3 per cent of net demand and time liabilities with effect from the fortnight beginning March 28 for a period of 1 year,” said RBI Governor Shashikanta Das.
The Reverse Repo Rate has been cut more so that banks are incentivised to lend, said Das.