The Reserve Bank of India announced on 9 October that banks would have to maintain at least 99% of their required cash reserves each day, up from 90%. The change applies from the reporting fortnight beginning 16 October.
This concerns daily maintenance of the required reserves. It does not increase the cash reserve ratio itself to 99%; Mint reported that the overall CRR remained 3%. The higher daily minimum reduces the flexibility banks have in managing cash across a fortnight.
The RBI also scheduled a sale of 25,000 crore rupees of government securities for 13 October. Reports described the measures as steps to absorb banking-system liquidity after the policy-rate increase. The sale was planned when this brief was prepared; no auction result or guaranteed effect on borrowing costs is reported here.