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What Is Cash Reserve Ratio – Crr? |
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Answer» The Cash Reserve RATIO (CRR) refers to the liquid cash that BANKS have to maintain with the Reserve Bank of INDIA (RBI) as a certain percentage of their demand and time liabilities. For example if the CRR is 10% then a bank with NET demand and time DEPOSITS of Rs 1,00,000 will have to deposit Rs 10,000 with the RBI as liquid cash. The Cash Reserve Ratio (CRR) refers to the liquid cash that banks have to maintain with the Reserve Bank of India (RBI) as a certain percentage of their demand and time liabilities. For example if the CRR is 10% then a bank with net demand and time deposits of Rs 1,00,000 will have to deposit Rs 10,000 with the RBI as liquid cash. |
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