The Reserve Bank of India has hinted at another reduction in the cash reserve ratio of banks to ease the severe liquidity in the system.RBI deputy governor Subir Gokarn said this while speaking to reporters on the sidelines of a function in Mumbai yesterday. Mr Gokarn did not indicate any timeline for the cut. However, he has ruled out a cut in the statutory liquidity ratio or SLR, saying that such a move will not create any additional cash flow. The RBI had cut CRR by 0.5 percentage points to 5.5%, releasing Rs 32,000 crore into the system on 24th of January. However, since then the fund crunch has only worsened. Stating that the liquidity deficit is partly structural and partly temporary, Mr Gokarn said that the reason why RBI is conducting open market operations consistently is to address that.