January 2012
The Reserve Bank of India (RBI) on 24 January 2012 cut the cash reserve ratio (CRR) by 50 basis points from 6 per cent to 5.5 percent with effect from 28 January 2012. RBI thus released Rs 32000 crore to banks. The RBI kept the repo rate unchanged at 8.50 per cent for the second consecutive time after raising it 13 times between March 2010 and October 2011. It also kept Reverse Repo Rate unchanged.
The Department of Industrial Policy and Promotion (DIPP) notified the rules allowing 100% foreign direct investment (FDI) in single-brand retail. Currently 51% FDI is permitted in this segment of retailing which was opened to foreign players almost six years ago.