<P> The RBI is also a banker to the government and performs merchant banking function for the central and the state governments . It also acts as their banker . The National Housing Bank (NHB) was established in 1988 to promote private real estate acquisition . The institution maintains banking accounts of all scheduled banks, too . RBI on 7 August 2012 said that Indian banking system is resilient enough to face the stress caused by the drought - like situation because of poor monsoon this year . </P> <P> On 8 November 2016, the Government of India announced the demonetisation of all ₹ 500 (US $7.70) and ₹ 1,000 (US $15) banknotes of the Mahatma Gandhi Series on the recommendation of the Reserve Bank of India (RBI). The government claimed that the action would curtail the shadow economy and crack down on the use of illicit and counterfeit cash to fund illegal activity and terrorism . </P> <Table> Policy Rates, Reserve Ratios, Lending and Deposit Rates as of February 2018 <Tr> <Td> Policy Rates </Td> </Tr> <Tr> <Th> Bank Rate </Th> <Td> 6.25% </Td> </Tr> <Tr> <Th> Repo Rate </Th> <Td> 6.0% </Td> </Tr> <Tr> <Th> Reverse Repo Rate </Th> <Td> 5.75% </Td> </Tr> <Tr> <Th> Marginal Standing Facility Rate </Th> <Td> 6.25% </Td> </Tr> <Tr> <Td> Reserve Ratios </Td> </Tr> <Tr> <Th> Cash Reserve Ratio (CRR) </Th> <Td> 4% </Td> </Tr> <Tr> <Th> Statutory Liquidity Ratio (SLR) </Th> <Td> 19.5% </Td> </Tr> <Tr> <Td> Lending and Deposit Rates </Td> </Tr> <Tr> <Th> Base Rate </Th> <Td> 8.65%--9.45% </Td> </Tr> <Tr> <Th> MCLR (overnight) </Th> <Td> 7.65%--8.05% </Td> </Tr> <Tr> <Th> Savings Deposit Rate </Th> <Td> 3.5%--4% </Td> </Tr> <Tr> <Th> Term Deposit Rate for> 1year </Th> <Td> 6%--6.75% </Td> </Tr> </Table> <Tr> <Td> Policy Rates </Td> </Tr>

What is the cash reserve ratio in india