RBI hikes CRR by 50 bps in two stages

The Reserve Bank of India, or RBI, has hiked CRR by 50 bps to 8% in two stages to contain inflation expectations, reports CNBC-TV18. The first 25 bps CRR hike will be effective April 26 while the second 25 bps hike will be effective May 10. The 50 bps hike would drain Rs 18,500 crore from the system.

Meanwhile, RBI plans to sell Rs 2,500 crore 91-day treasury bills Wednesday, inclusive of Rs 2,000 crore under the market stabilization scheme, or MSS. The central bank also plans to sell Rs 2,000 cr 364-day T-Bill Wednesday, inclusive of Rs 1,000 crore MSS