The current policy requires the RBI to hold 5.5%-6.5% of its balance sheet as capital reserves. A reduction in the ratio would allow the central bank to transfer more of its surplus to the government, helping it ease its fiscal pressures.
The current policy requires the RBI to hold 5.5%-6.5% of its balance sheet as capital reserves. A reduction in the ratio would allow the central bank to transfer more of its surplus to the government, helping it ease its fiscal pressures.