New Delhi, March 4 -- The Reserve Bank of India (RBI) will have to cut the Cash Reserve Ratio (CRR) to ease the prevailing liquidity pressure in the banking sector, according to a report by State Bank of India (SBI) research.

The report highlighted that with unchanged ownership in government securities (G-secs) in the financial year 2025-26 (FY26), the Open Market Operations (OMO) gap could still be around Rs 1.7 trillion. This suggests that additional liquidity measures may be required on a sustained basis.

It said "Liquidity Estimation; CRR cut is necessary to ease the pressure, RBI could look into using CRR more as a regulatory intervention tool / countercyclical liquidity buffer rather than as a liquidity tool in future".

According...