Question
What amount is expected to be injected into the banking
system as a result of the 100 basis point CRR cut?Solution
The Cash Reserve Ratio (CRR) was cut by 100 basis points, and this is estimated to release ₹2.5 lakh crore into the banking system. This move is designed to increase liquidity, enabling banks to offer more loans and stimulate economic growth, particularly in the face of external trade risks.
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