Struggling with slowdown in credit growth, bankers on Thursday demanded a cut in cash reserve ratio (CRR) from the Reserve Bank of India (RBI) in the next monetary policy scheduled at the end of this month. CRR is the proportion of deposits they have to park with RBI.
“We have asked for a cut in CRR,” said Diwakar Gupta, CFO, State Bank of India, after a pre-policy consultation meeting with deputy governors of the RBI.
The RBI will announce first quarter review of monetary policy on July 30, in which it is expected to leave repo rate and CRR.
The central bank in the current calendar year has reduced repo rate by 0.75 percentage points to 7.25% and CRR by 0.25 percentage points.