New Delhi, Oct. 12 -- The Reserve Bank of India's (RBI) decision to increase the daily Cash Reserve Ratio (CRR) maintenance requirement is expected to have a limited impact on banks' net interest margins (NIMs), while potentially withdrawing Rs 400 billion to Rs 800 billion from the banking system, according to a report by Jefferies.

The report said the move is in line with the Monetary Policy Committee's shift towards a stance of "calibrated tightening".

Under the revised rules, banks must maintain 99 per cent of the prescribed CRR daily, up from the earlier requirement of 90 per cent. The statutory CRR remains unchanged at 3 per cent of Net Demand and Time Liabilities (NDTL).

The higher daily requirement could prompt banks to keep mo...