Bank of India (RBI) deputy governor Dr Y V Reddy has said
Indias central bank is planning to move to a 3-per cent
cash reserve ratio (CRR) regime.
The RBI is considering restricting the banks access to
the call market to
2 per cent of aggregate deposits or 25 to 50 per cent
of the banks net-owned funds as part of the objective
to impart greater efficacy to the monetary policy.
the current stage, Reddy said, the cut in CRR towards
the desired target could be considered only if it is a
package. "While one of them relates to the present
way of maintenance of cash balance by banks with the RBI,
the other is restriction on using call-money options."
Time has come to take a hard look at the access of the
banks to call-money, he said. "The call-money window
should be used to iron out
temporary mismatches in liquidity and not as a source
of funding normal requirements on a sustained basis."