The top bank officials yesterday suggested Reserve Bank of India to cut the policy rates in a meeting. The proposal is in the light that the inflation rate has lowered down recently.
The Chief Executive of Indian Banks' Association, Dr K. Ramakrishnan said, "If growth has to happen and investments have to take place in the economy, then the RBI should send a signal by cutting policy rates."
The decision upon the issue is to be taken by the Reserve Bank of India, which it will declare on 24th January when it will declare the quarterly monetary policy review.
The apex bank has however alluded that a cut in CRR is unlikely. The Chairman of State Bank of India, Mr. Pratip Chaudhuri said, "CRR cut is unlikely - that is my personal view. But, we have asked them to pay interest on it."