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Differentiate the meaning of CRR and SLR. |
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Answer» The cash reserve ratio (CRR) is a certain percentage of bank deposits which a commercial bank is required to keep as cash reserves with itself. The statutory liquidity ratio (SLR) refers to the ratio of deposits which the commercial banks have to maintain a certain percentage of their total deposits and time deposits with themselves in the form of liquid assets, as per the directions of RBI. |
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