India's central bank cuts lenders' reserve requirements, injecting additional US$9.6B into banking system to increase credit availability amid economic slowdown

NEW YORK , March 9, 2012 () – India's central bank slashed reserve requirements for lenders, flushing the banking system with an extra 480 billion rupees ($9.6 billion) to keep credit available as the economy slows.

The Reserve Bank of India says in a statement Friday it has cut the proportion of deposits banks must hold as reserves by three quarters of a percentage point to 4.75 percent.

The central bank says its decision will ensure credit is available to businesses.

India's economy grew at its slowest pace in over two years in the last quarter of 2011.

High interest rates, stalled investment, policy paralysis and corruption scandals have all taken a toll on Asia's third-largest economy.

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