<p>The Reserve Bank on Wednesday announced a hike in cash reserve ratio (CRR) by 50 basis points to 4.5 per cent, effective May 21, which will take out Rs 87,000 crore liquidity from the system.</p>.<p>The decision was announced by RBI Governor Shaktikanta Das after an off-cycle meeting of the rate-setting panel -- Monetary Policy Committee (MPC).</p>.<p>CRR is a percentage of a bank's total deposits that it needs to maintain as liquid cash.</p>.<p>The MPC also decided to raise the repo rate or the short-term lending rate by 40 basis points to 4.4 per cent. </p>
<p>The Reserve Bank on Wednesday announced a hike in cash reserve ratio (CRR) by 50 basis points to 4.5 per cent, effective May 21, which will take out Rs 87,000 crore liquidity from the system.</p>.<p>The decision was announced by RBI Governor Shaktikanta Das after an off-cycle meeting of the rate-setting panel -- Monetary Policy Committee (MPC).</p>.<p>CRR is a percentage of a bank's total deposits that it needs to maintain as liquid cash.</p>.<p>The MPC also decided to raise the repo rate or the short-term lending rate by 40 basis points to 4.4 per cent. </p>