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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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