New Delhi, June 7 -- In a bid to revive domestic demand and energise India's slowing economy, the Reserve Bank of India (RBI) has not only delivered a sharper-than-expected 50 basis point cut in the repo rate but also announced a 100 basis point reduction in the Cash Reserve Ratio (CRR)-a move that is set to release Rs.2.5 trillion into the banking system over the next few months, media reports said.

This is the most significant CRR cut since the pandemic year of 2020 and comes at a time when inflation is showing sustained moderation.

The central bank now pegs its FY26 inflation forecast at 3.7%, revised down from 4% earlier.

The move is particularly significant as it offers banks added headroom to expand their loan books at a time whe...