02 January,2009 05:56 PM IST | | PTI
The Reserve Bank of India on Friday eased money supply further by cutting key policy rates and ratios - decisions that would among other things infuse Rs 20,000 crore into the banking system.
The central bank cut Cash Reserve Ratio - the amount of cash that banks need to keep in reserve - by 0.50 percentage point to five per cent.
It also cut repo and reverse repo - the short-term rates at which RBI lends and borrows from banks - by 100 basis points each to 5.5 per cent and four per cent, respectively.
