New Delhi, June 6 -- The Reserve Bank of India (RBI) announced a substantial monetary policy intervention on Friday, with a 1 percent cut in the Cash Reserve Ratio (CRR) to inject Rs 2.5 lakh crore into the banking system.

The CRR reduction will lower the reserve requirement from 4 percent to 3 percent of net demand and time liabilities, implemented through four equal installments of 25 basis points each.

The phased implementation schedule begins September 6, 2025, followed by subsequent reductions on October 4, November 1, and November 29, with full implementation completed by December 2025.

"The Reserve Bank remains committed to provide sufficient liquidity to the banking system. To further provide durable liquidity, it has been deci...