The Reserve Bank of India has done it again. They have hiked the CRR rate by 0.5% taking it to 7%. Most company CFOs were not expecting the same and this has come as a surprise. Reacting to this hike, the 30 share Sensitive Index of Bombay Stock Exchange fell by 150 points from the day’s high.
RBI has left other rates unchanged. India’s central bank withdraws cap of Rs 3,000 crore (Rs 30 billion) on daily reverse repo (overnight borrowing) transaction from August 6.