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As we all know the RBI has raised the Cash Reserve Ratio (CRR) by 25 bps. in April 20 What action banks will have to take to implement the same ? They will have to deposit some more money with the RBI as a reserved money. Banks will be required to give some more loan to projects of the priority sector. Banks will be required to give loan equivalent to the CRR to the Govt. of India for its day to day expenditure as and when required.
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