RBI cuts CRR by 0.5% (50 Basis points)

As I stated in some of my previous posts, RBI reduced the CRR by 50 basis points means from 9% to 8.5%.

The central bank's move will infuse Rs 20,000 crore (Rs 200 billion) into the markets.

The change will come into effect from the fortnight beginning October 11, 2008. As a result of this reduction in the CRR, an amount of about Rs 20,000 crore would be released into the system.