MUMBAI: Reserve Bank of India Deputy Governor H.R. Khan said on Friday that options were open on a further cut in the cash reserve ratio (CRR) for banks before the central bank's policy review on March 15, but a view had not yet been taken.
Further debt buying through open market operations could also not be ruled out, he said.
"We are looking at all options," Khan said when asked if the RBI would consider a CRR cut between policy reviews, adding that "a view has to be taken."
The CRR is the share of deposits that banks have to maintain with the central bank.
In its monetary policy review in January, the RBI cut the CRR by 50 basis points, which is estimated to have released about 320 billion rupees ($6.47 billion) into the banking system.
However, bank borrowing from the RBI's repo window has remained persistently high, indicating a large shortfall in liquidity. On Thursday, repo borrowing was a record 1.92 trillion rupees.
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