Economics · Monetary Policy
The Cash Reserve Ratio (CRR) refers to ______.
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1the proportion of deposits that commercial banks must keep as liquid cash in their own vaults
- 2the proportion of total deposits that commercial banks are required to keep with the Reserve Bank of India✓
- 3the proportion of deposits that commercial banks can freely lend to borrowers
- 4the proportion of cash advanced by the Reserve Bank of India to commercial banks
Correct answer
the proportion of total deposits that commercial banks are required to keep with the Reserve Bank of India
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