Home / Knowledge / News / Textiles / RBI releases extra money for lending by lowering bank SLR
RBI releases extra money for lending by lowering bank SLR
06
Aug '14
The apex bank of India – Reserve Bank of India (RBI) has on Tuesday lowered the statutory liquidity ratio (SLR) of banks, by half a percentage point to 22.0 percent of deposits. This move is expected to free thousands of crores of rupees for lending in the banking system.

“This will come in to effect from August 9”, a RBI press release said.

As widely expected, RBI kept its key policy repo rate unchanged, but committed to bringing down inflation to 6 percent by January 2016.

RBI Governor Raghuram Rajan however admitted that though the higher liquidity in the banking system may not bring lending rates down in the short term, the lowering of SLR would ensure that banks have money to lend when credit demand picks up.

Raghuram Rajan did not change the cash reserve ratio (CRR) of scheduled banks at 4% of bank deposits and also kept the policy repo rate under the liquidity adjustment facility (LAF) unchanged at 8%.

Raghuram Rajan said the pressure was to meet both inflation targets for 2015 and 2016. He said, “We are close to the time, when our first target has to be met and alongside we also need to also be confident in reaching the 6 percent target."

Fibre2fashion News Desk - India

Must ReadView All

RBI Governor Urjit Patel addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

Defying expectations, RBI keeps repo rate unchanged

Defying market expectations, the Monetary Policy Committee (MPC) of...

RBI Governor Urjit Patel and other officials addressing a press conference. Courtesy: Youtube

Textiles | On 7th Dec 2016

RBI withdraws the incremental CRR from Dec 10

The Reserve Bank of India (RBI) has decided to withdraw the...

Textiles | On 7th Dec 2016

‘Price-competitiveness is crucial for China yarn market’

Kikani Exports, India based yarn supplier with 12 years of experience ...

Interviews View All

Victor Chao
Esmetex

‘In future, clothing boundary lines will become increasingly blurred.’

Smita Murarka
Amanté

‘There is huge demand in the Indian lingerie market for non-wired styles.’

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
December 2016

December 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search