What’s in the news?

• RBI has decided to discontinue Incremental Cash Reserve Ratio (I-CRR) which was put in place to absorb surplus liquidity following the withdrawal of 2,000 rupees currency notes, in a phased manner. 
• The I-CRR was introduced on August 10, 2023, by the RBI to absorb the surplus liquidity generated by various factors, including the return of Rs 2,000 notes to the banking system. 
• The RBI mandated banks to maintain an incremental cash reserve ratio (I-CRR) of 10 percent on the increase in their net demand and time liabilities (NDTL) between May 19, 2023 and July 28, 2023.
• The measure was intended to absorb the surplus liquidity generated by various factors, including the return of 2,000 rupee notes to the banking system.
• The regulator had said that I-CRR was a temporary measure, which will be reviewed on September 8, 2023 or before.

https://newsonair.gov.in/News?title=RBI-decides-to-discontinue-Incremental-Cash-Reserve-Ratio-in-a-phased-manner&id=467470