SBI favours phasing out of CRR

SBI favours phasing out of CRRKolkata, Aug 23 - The country's largest public sector lender State Bank of India has strongly proposed phasing out of Cash Reserve Ratio (CRR) from the banking system, its chairman Pratip Chaudhuri said Thursday.

"CRR doesn't help anybody. It is unfairly put on the bank. Why is the CRR not applied to insurance companies, NBFCs (non-banking finance companies) and mutual funds who are also capable of mobilising deposits from the public?" Chaudhuri told reporters on the sidelines of a FICCI programme.

"It doesn't help RBI, doesn't help banks, the industry and the country either. We have recommended every time to the RBI for phasing out of CRR. Most of the banks, even the finance ministry, have made the point to the RBI," he said.

According to Chaudhuri, as the CRR, which is the portion of deposits banks need to keep with the RBI, does not earn any interest, it is leading to cost increase for the industry "without benefiting anybody".

Currently, the CRR is 4.75 percent of the total bank deposits.(IANS)


Check out More news from Telecom Sector :: Pharmaceutical Sector :: Auto Sector :: Infrastructure :: Real Estate

Popular Stories

Sufi legend Begum Yaman passes away at 52

New Delhi [India], Apr 28 : Famous sufi singer and... Read More

No farmer committed suicide over drought: TN Govt. to SC

New Delhi [India], Apr. 28 : In a development bound... Read More

Never took studies as 'burden', says JEE 2017 topper

Udaipur (Rajsthan) [India], Apr 28 : Kalpit Veerwal... Read More

Narada sting: ED files case against TMC leaders

New Delhi [India], Apr. 28 : After the Central... Read More

UP STF raids petrol pumps, eight caught using cheating chip

Lucknow (Uttar Pradesh), April 28 : The special... Read More

UP school issues bizarre diktat: Yogi haircut

Meerut (Uttar Pradesh) [India], Apr 28 : In a... Read More