Reserve Bank of India has reduced cash reserve ratio by 75 basis points. Cash reserve ratio is the ratio of which banks need to deposit the part of their money with the RBI. This will reduce the rate of interest and loans interest rate. RBI has issued a circular no. 86 dated 09-03-2012 about this issue. Full circular is as under.
UBD.BPD. (SCB). Cir.No.3/12.03.000/ 2011-12
All Scheduled Primary (Urban) Co-operative Banks