RBI cuts repo rates by 25 bps; first cut in nearly 5 years
After cutting the cash reserve ratio (CRR) by 50 bps from 4.5% of NDTL, to 4.0% of NDTL in the December 2024 policy, the RBI maintained status quo on CRR in the February 2025 policy. With the system liquidity deficit still at ₹1.96 Trillion, another CRR cut was expected to bridge the current liquidity gap, but that was not to be.