Reserve Requirement

SBI may reduce lending rate after RBI's credit policy

"Of course, we will look into reducing the interest rate in the future, but it will depend on the magnitude of the CRR cut (by the RBI)," SBI Managing Director and Group Executive, A Krishna Kumar said.

Why the RBI must cut interest rates

Banks, by passing on lower interest rates to borrowers, can increase demand for credit leading to a multiplier effect. The multiplier effect helps raise deposit as well as broad money growth.

CRR cut will allow banks to lower interest rates: SBI

Cash Reserve Ratio (CRR) is the portion of deposits which banks are required to keep with the Reserve Bank.