RBI plans to discontinue I-CRR in a phased manner to manage system liquidity without disrupting the money markets. On September 9, it will release 25 per cent of I-CRR, another 25 per cent on September 23, 2023, and the remaining 50 per cent on October 7, 2023.

What is I-CRR

The inception of the Incremental Cash Reserve Ratio (I-CRR) in 2016 was a transient strategic measure employed by the RBI to absorb the excessive liquidity coursing through the banking system. It is an additional cash balance which the RBI can ask banks to maintain over and above the CRR - for a specific period.