India's Central Bank lowers cash reserve ratio, releasing 1.16 trillion rupees in two phases.

On December 6, the Central Bank of India Governor Shaktikanta Das announced in Friday’s monetary policy speech that the bank has decided to reduce the cash reserve ratio of banks by 50 basis points to 4%. The cash reserve ratio refers to the proportion of deposits that banks need to retain as cash. This reduction will be implemented in two phases, with a 25 basis point reduction each time, effective on December 14 and December 28 respectively. Das stated that the reduction in the cash reserve ratio will release 1.16 trillion rupees into the banking system. Previously, the Central Bank of India maintained its key Interest Rate unchanged.