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      Question

      RBI increased the CRR requirement to 4.5% in May 2022.

      This action is expected to ________
      A withdraw liquidity by Rs.87000 crore Correct Answer Incorrect Answer
      B infuse liquidity by Rs.87000 crore Correct Answer Incorrect Answer
      C withdraw liquidity by Rs.37000 crore Correct Answer Incorrect Answer
      D infuse liquidity by Rs.37000 crore Correct Answer Incorrect Answer
      E None of the above Correct Answer Incorrect Answer

      Solution

      The RBI increased the CRR (Cash Reserve Ratio) by 50 bps to 4.50% of the NDTL •       effective from the fortnight beginning May 21, 2022 •       This has been done to withdraw excess liquidity; the withdrawal of liquidity through this increase in the CRR would be of the order of ₹87,000 crore.

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