RBI?s CRR cut by 100 bps to be delivered in four tranches with effect from September

In a move to further provide durable liquidity, RBI decided to reduce the cash reserve ratio (CRR) by 100 basis points (bps) to 3.0 per cent of net demand and time liabilities (NDTL) in a staggered manner during the course of the year. This reduction will be carried out in four equal tranches of 25 bps each with effect from the fortnights beginning September 6, October 4, November 1 and November 29, 2025. The cut in CRR would release primary liquidity of about ₹2.5 lakh crore to the banking system by December 2025, RBI guv said. Besides providing durable liquidity, it will reduce the cost of funding of the banks, thereby helping in monetary policy transmission to the credit market. The central bank governor however reiterated that RBI will continue to monitor the evolving liquidity and financial market conditions and proactively take further measures, as warranted.

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