India's Bankers Oppose CRR Hike

India's banks are opposing a forthcoming hike in the cash reserve ratio (CRR), which is currently at 6%, says the Economic Times.

 

The CRR is a percentage of deposits which banks have to maintain with the Reserve Bank of India interest-free, explains the Times.

 

The central bank has questioned financial institutions on the slowdown in deposit growth, which bankers' attribute to reduction in deposit rates by banks.

 

Meanwhile, some bankers are also urging the RBI to give them one year to adopt the base rate, the system introduced this month to calculate the lending rate, says the Times.
 

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