RBI sets 100% incremental cash reserve ratio amid note ban
In order to absorb excess liquidity in banking system following demonetisation, the RBI has introduced an incremental cash reserve ratio (CRR) of 100% from the fortnight beginning November 26. This is estimated to remove around ₹3.24 lakh crore excess liquidity. Further, the RBI will review the decision on December 9 or earlier as it's intended to be a temporary measure. 