AlQa'dah 1, 1433, Sep 17, 2012, SPA - India's central bank Monday cut the cash reserve ratio as it tries to kick-start flagging growth and welcomed government efforts to open Asia's third-largest economy to more foreign investment. The Reserve Bank of India said the share of deposits that banks must keep with it as reserves was cut by a quarter percentage point to 4.5 percent, injecting about 170 billion rupees ($3.2 billion) into the banking system, according to a report of the Associated Press. The central bank also announced that it would keep its short-term lending rate, or repo rate, unchanged at 8 percent. The reverse repo rate at which the bank absorbs excess money by borrowing from banks, was also unchanged at 7 percent. The monetary policy decisions come just days after the government announced landmark reforms aimed at giving a boost to India's economy.
