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

Q: Answer-RBI increased the CRR requirement to 4.5% in May 2022. This action is expected to ________

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.

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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