India RBI chief sees cut in cash reserve ratio .  NEW DELHI 1996-08-22  The Reserve bank of India governor C. Rangarajan said on Thursday that he expected the cash reserve ratio ( CRR ) maintained by banks to be reduced over the medium term .  " Over the medium term , yes , " he told Reuters after addressing industrialists in the capital .  He denied having said in a recent newspaper interview that the CRR could be raised if necessary .  He said he was only trying ( in that newspaper report ) to explain the theoretical position on the use of the CRR by central banks to manage money supply .  Rangarajan explained that the cash reserve ratio was an instrument that central banks could use to regulate money supply by reducing or increasing the ratio .  But in the current context , the government stood by an earlier commitment to reduce it over a period of time , he said in response to a question .  -- [START_ENT] New Delhi [END_ENT] newsroom , +91-11-3012024
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