Economics · Banking and Monetary Policy
What does the Cash Reserve Ratio (CRR) signify in the banking system?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Government reserve requirement in the form of liquid assets
- 2The share of net demand and time liabilities that banks must keep as cash balance with the RBI✓
- 3The loan-to-deposit ratio maintained by commercial banks
- 4Percentage of loans banks must give to priority sectors
Correct answer
The share of net demand and time liabilities that banks must keep as cash balance with the RBI
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