<h1>Banks Get Major Liquidity Boost as RBI Cuts CRR by 1%, Releasing Rs 2.5 Lakh Crore to Stimulate Economic Growth</h1> The Reserve Bank of India announced a significant 1% reduction in Cash Reserve Ratio (CRR), which will unlock Rs 2.5 lakh crore in bank funds by December 2025. The cut will be implemented in four equal 25 basis point tranches, reducing CRR to 3%. This move aims to boost liquidity, reduce bank funding costs, and support economic growth, which recently hit a four-year low of 6.5%. The central bank remains committed to monitoring financial market conditions and taking proactive measures.