By IANS,
New Delhi : The Confederation of Indian Industry (CII) has welcomed the cut in the cash reserve ratio (CRR) by 100 basis points to 6.5 percent, but urged the central bank to reduce it further to five percent.
The Reserve Bank of India (RBI) Wednesday cut the CRR to release Rs.400 billion into the system.
“The CRR cut by 100 bps was very much needed to infuse additional liquidity into the system and in fact, the CII would like the CRR to go back to five percent level,” CII director general Chandrajit Banerjee said in a statement.
The industry lobby also welcomed the government’s move to extend additional money to banks to meet the liquidity requirements of mutual funds, saying it would be able to derisk the mutual funds industry from facing a crisis owing to potential redemption pressure.