India's central bank unexpectedly cut the Cash Reserve Ratio (CRR) to 3%, releasing ₹2.5 trillion into the banking system. This, combined with a 50 bps policy rate cut and prior infusions, aims to increase lending and improve monetary transmission.

• CRR cut to 3%, lowest since March 2020.
• ₹2.5 trillion liquidity boost for banks.
• Supports unwinding of the FX forward book.