Banking Awareness - Basics Of Banking & Banking Terminology
Which term refers to the minimum percentage of total deposits that banks must keep with the Reserve Bank of India in the form of cash?
Which term refers to the minimum percentage of total deposits that banks must keep with the Reserve Bank of India in the form of cash?
easy Q11 of 15
Step-by-Step Solution
Step 1: Identify the nature of reserve
The question asks about deposits kept in cash with the RBI.Step 2: Recall the banking definition
CRR is the portion of deposits that banks must maintain as cash with the RBI.Final Answer:
Cash Reserve Ratio (CRR) → Option AQuick Check:
CRR = cash with RBI, not invested elsewhere ✅
Quick Trick: CRR always involves cash kept directly with RBI.
Common Mistakes:
- Confusing CRR with SLR which includes liquid assets.
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