As per the RBI’s Monetary policy committee meeting of

Solution

In the Monetary policy meeting of RBI held in June 2025, RBI decided to reduce the Cash Reserve Ratio (CRR) of all banks by 100 basis points in four equal tranches of 25 basis points each to 3.0 per cent of net demand and time Liabilities (NDTL). Accordingly , banks are required to maintain the CRR at 3.75 per cent, 3.5 per cent, 3.25 per cent and 3.0 per cent of their NDTL effective from the reporting fortnight beginning September 6, October 4, November 1 and November 29, 2025, respectively.     T he RBI also reduced the policy repo rate by 5 0 basis points (bps) to 5.50 per cent. Consequently, the standing deposit facility (SDF) rate under the liquidity adjustment facility (LAF) was adjusted to 5.25 per cent and the marginal standing facility (MSF) rate and the Bank Rate to 5.75 per cent.    The committee also shifted its policy stance from ‘accommodative’ to ‘neutral’ and revised its inflation outlook downwards for FY26. The latest decisions come amid easing inflationary pressures and continued challenges to economic growth.