RBI hikes CRR for non-scheduled urban co-operative banks

The Reserve Bank of India (RBI) raised the Cash Reserve Ratio (CRR) for non-scheduled Urban Co-operative Banks (UCBs) by 100 basis points from 3% to 4%. The step will bring nonscheduled UCBs on par with scheduled primary urban co-operative banks. There are around 1,500 unscheduled UCBs in India.

CRR is a part of a bank’s deposits that it needs to keep with RBI. This money generates no interest. The current CRR level is 4%.

In an another step, the apex bank has slashed the Statutory Liquidity Ratio (SLR) requirement for the primary UCBs by 50 basis points to 22.50% in order to bring them on equal footing with commercial banks.SLR  is that portion of a bank’s deposits that it needs to maintain in gold, government bonds and securities.

Sumitra Mahajan: Speaker of 16th Lok Sabha

Sumitra Mahajan (71) was elected Speaker of the 16th Lok Sabha unopposed. She has gained the honor of becoming the second woman presiding officer of the lower house after her predecessor Meira Kumar.

Mahajan, the longest-serving woman MP, was elected after a motion moved by Prime Minister Narendra Modi and seconded by BJP leader L K Advani was adopted by voice vote called by pro tem Speaker Kamal Nath.