Computation of CRR
The RBI introduced the system of lag of one fortnight in maintenance of stipulated CRR by banks w.e.f. November 06, 1999 to improve cash management by banks. Further, the daily minimum CRR maintenance requirement has been reduced to 90 percent effective from the fortnight beginning from April 16, 2016.
In terms of RBI circular dated November 26, 2016 on Requirement for maintaining additional CRR, Banks, effective from the fortnight beginning November 26, 2016, are required to maintain with an incremental CRR of 100 per cent on the increase in NDTL between September 16, 2016 and November 11, 2016.