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Aug 03, 2015
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CRR needs: Banks face RBI hurdle on gold
Banks may not get to use gold mobilised under the proposed gold monetisation scheme to meet the cash reserve ratio (CRR) requirement as the Reserve Bank of India has opposed the move that could dilute the effectiveness of this monetary policy tool, official sources said.
CRR, one of the policy instruments at the RBI’s disposal, mandates banks to keep 4% of their net demand and time liabilities as cash balance with the central bank. Banks do not get any interest on their CRR deposits.
Source -
http://www.financialexpress.com
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