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<h1>Cash Reserve Ratio reduction unlocks banking liquidity and eases funding costs, aiding monetary policy transmission.</h1> Reserve Bank will reduce the Cash Reserve Ratio by 100 basis points to three percent in four equal tranches, releasing primary liquidity to the banking system to lower banks' funding costs and support credit flow. The Statutory Liquidity Ratio is unchanged at eighteen percent. The Bank noted durable liquidity injections, a transition to surplus liquidity, muted response to Variable Repo Rate auctions, high Standing Deposit Facility balances, and a weighted average call rate at the lower end of the LAF corridor, and stated it will continue monitoring conditions.