RBI to Restore Cash Reserve Ratio in Two Phases to 4 Pc FOLLOW US ON: The Reserve Bank on Friday decided to restore the cash reserve ratio (CRR) in a phased manner to 4 per cent in light of improved liquidity condition in the market. The CRR is the percentage of the total deposit that banks have to mandatorily park with the apex bank. The move to raise CRR would suck about Rs 1.37 lakh crore primary liquidity from the banking system. To help banks tide over the disruption caused by COVID-19, the CRR of all banks was reduced by 100 basis points to 3.0 per cent of net demand and time liabilities (NDTL) effective from the reporting fortnight beginning March 28, 2020. The dispensation was available for a period of one year ending March 26, 2021.