Cutting Bank’s amounts of funds or Cash Reserve Ratio (CRR) they set aside with Central Bank of India, are among the options that the Central Bank look towards the improve liquidity in its system, today reports Finance Ministry Official.
RBI (Reserve Bank of India) may also consider purchasing more bonds from the open market as well as open a special entrance for Mutual Funds to increase liquidity, reports the official. It also rejected to be identified as the discussions are yet not public.
CRR presently holds 4 percent of Bank’s total deposits. After the statement, 10-years benchmark bond yield eased one basis points to 8.12 percent from the earlier news.