💨 Abstract

The SBI report suggests that the Reserve Bank of India (RBI) should cut the Cash Reserve Ratio (CRR) to ease the current liquidity pressure in the banking sector. The report predicts an OMO gap of Rs 1.7 trillion in FY26, requiring additional liquidity measures. The RBI is recommended to use CRR as a regulatory intervention tool or countercyclical liquidity buffer, instead of a liquidity tool.

Courtesy: theprint.in

Summarized by Einstein Beta 🤖