While the rate cut was minimal, the central bank also effected a slew of other changes to facilitate more and cheaper liquidity in the system. The central bank kept the CRR unchanged at 4 per cent but lowered the minimum daily cash reserve ratio (CRR) requirement to 90 per cent from 95 per cent.
It raised the reverse repo rate by 25 basis points. This is the rate of interest that banks earn when they park money with the banking regulator. Banks purchase government securities from RBI to ..