RBI raises CRR daily maintenance to 99% amid $133bn inflows
The Reserve Bank of India (RBI) is making banks keep a bit more of their money parked with it, raising the minimum daily maintenance of the Cash Reserve Ratio (CRR) from 90% to 99% starting October 16, 2026.
The CRR itself stays at 3%, but this tighter rule is RBI's way of dealing with a flood of cash in the system, thanks to $133 billion in foreign deposits that came in between June 8 and August 31, 2026.
Upasna Bharadwaj warns ₹5.9L/cr excess liquidity
Even after using its usual tools, like special auctions and selling government securities, RBI still sees too much extra money floating around, about ₹5.9 lakh crore daily.
Upasna Bharadwaj, Chief Economist, Kotak Mahindra Bank, says this move could make things less flexible for banks but might help keep the rupee steady.
She also expects RBI will keep using more open market operations and currency moves to manage the situation and keep interest rates stable.