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Crr

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12 March 2012 if CRR cuts by RBI then how it impact on stock market
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CA SURENDRA KUMAR RAKHECHA

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CA SURENDRA KUMAR RAKHECHA (Expert)
17 March 2012 Cash Reserve Ratio; if cut by RBI; means banks are now required to maintain low cash ratio which means more funds are now available for advancing loans to the business organisations etc.
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This is usually cut when banks feel acute shortage of funds and industry outlook is good.
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A cut in CRR is taken positive by stock market as it feels that problem is likely to be solved soon.
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Please buy a good book of banking terminology.
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