Mumbai, June 6 -- In a major move to boost liquidity in the economy, the Reserve Bank of India (RBI) on Friday announced a cut in the Cash Reserve Ratio (CRR) by 100 basis points in four tranches of 25bps each.

With this, the CRR has been reduced from 4 per cent to 3 per cent, which is expected to release about Rs 2.5 lakh crore into the banking system.

RBI Governor Sanjay Malhotra, while announcing the decisions of the Monetary Policy Committee (MPC), also stated that the policy stance has been changed from "accommodative" to "neutral".

He said, "Hence, the MPC also decided to change the stance from accommodative to neutral. From here onwards, the MPC will be carefully assessing the incoming data and the evolving outlook to chart out ...