Answer / samuel alexander

if the crr is increased it will effect the lending rates
......inturn interest on loans will be increased......and
interest on deposits will be reduced

Answer / shreedhar vasani

CRR increase will suck liquidity from the market.... it will
help to tame inflation....

CRR is widly used tool to control the inflation for RBI

Answer / kc

CRR is the amount of funds commercial banks have to keep
with RBI.If RBI decides to increase the percent of this,
the available amount with the banks comes down. RBI is
using this method (increase of CRR rate), to drain out the
excessive money from the banks.

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