Bankers have appealed to the banking regulator, Reserve Bank of India that the current rate of cash reserve ratio (CRR) should not be raised in the upcoming credit policy review on July 27.

CRR refers to the amount of deposits that banks need to be maintained with RBI as per prudential norms.

The suggestion of not raising the CRR was put forward by CEOs of some private and public sector banks to RBI governor, D Subbarao in the customary per policy consultation meeting.

Although in minority, some chiefs were of the view that CRR should be raised. They defended their stance saying that liquidity was going to easen in less than a month and thus banks would be soon flooded with liquidity with no wide investment options.