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        <h1>RBI Implements 100% Incremental CRR and Raises Market Stabilisation Scheme Limit to Manage Post-Demonetization Liquidity.</h1> The Reserve Bank of India (RBI) implemented measures to manage excess liquidity in banks following demonetization. It introduced a 100% incremental Cash Reserve Ratio (CRR) on deposits from September 16 to November 11, 2016, effective November 26, but withdrew it on December 10, 2016. Additionally, the Market Stabilisation Scheme limit was raised to Rs. 6 lakh crore from Rs. 30,000 crore to absorb liquidity from December 2, 2016. RBI uses repo and reverse repo for liquidity management. Lending rates are influenced by multiple factors, including liquidity, but each bank sets its Marginal Cost Lending Rate (MCLR) based on RBI guidelines.

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