In its effort to lower down inflation rate RBI has hiked repo rate by 50 bps, and CRR by 25 bps.

Inflation may go beyond a 13 year high of 9 per cent due to hike in petroleum prices.

The Reserve Bank of India increased its repo rate to 8 percent from 7.75 percent on Wednesday.

India’s inflation rate is already near the 9% mark, close to 13 year high.

In order to contain inflation in India, the RBI has proclaimed a sudden 50-basis-point raise in the banks' reserve requirements.