The cash reserve ratio which was 9 per cent in October 2008 has been brought down to 5 per cent.
To overcome the problem of availability of collateral of government securities for availing of LAF, a special refinance facility was introduced in October 2008 to enable banks to get refinance from the RBI against a declaration of having extended bona fide commercial loans, under a preexisting provision of the RBI Act for a maximum period of 90 days.