Known as Cash
Reserve Ratio, it is a certain minimum percent of total demand and Time
liabilities that is to be kept as cash with RBI. Originally, RBI could
stipulate CRR between 3% to 30%. After enactment of RBI Amendment Bill,
2006, the floor as well as the ceiling rates have been removed.
With effect from 27/07/2013,Banks asked to
maintain higher average cash reserve ratio of 99% of the requirement on
daily basis as against earlier 70%.
Liquidity Adjustment Facility (LAF ) for each
bank reduced from 1% of the total deposits to 0.5% w.e.f. 24/07/2013.
Total amount of funds available to a standalone Primary Dealer under LAF
will be capped at 100% of the individual PD's net owned funds as per the
latest audited balance sheet.