Question
Which out of the following is/are correct regarding Cash Reserve Ratio (CR
- R ? Section 42 of RBI Act, 1934 lays foundation for maintaining CRR by scheduled commercial bank with RBI. Section 24 of the Banking Regulations Act, 1949 provide powers to RBI to levy CRR on banks As of Feb 2021, CRR is 3 per cent of NDTL
Read the following passage and answer the next 4 questions (Q14-Q15) Cash Reserve Ratio refers to the fraction of the total Net Demand and Time Liabilities (NDTL) of a Scheduled Commercial Bank held in India, that it has to maintain as cash deposit with the Reserve Bank of India (RBI). The requirement applies uniformly to all banks in the country irrespective of an individual bank’s financial situation or size. Scheduled Commercial Banks (that includes public and private sector banks, foreign banks, regional rural banks and co-operative banks) are required to maintain a cash balance on average with the RBI on a fortnightly basis to cater to the CRR requirement. Non Bank Financial Corporations (NBFCs) are outside the purview of this reserve requirement. Act also authorizes RBI to stipulate an additional or incremental CRR, which, however, has not been put in place by RBI. Banks have to maintain 100% CRR on an average basis during the fortnight. That is, it is not necessary that on all days CRR has to be at 100%.
More Financial Management Questions
- Stand Up India Scheme was launched in 2016 for facilitating credit to SC/ST and Women entrepreneurs. The loans availed through the Scheme are repayable in ...
- The exchange rate between the Indian rupee (INR) and the US dollar (USD) has been fluctuating significantly due to global economic uncertainties and change...
- Under Basel III norms, which risk is not directly covered?
- Under written down value method of Depreciation, the WDV of the asset is always:
- Which among the following assets are considered as 'Near Money'?
- Apart from unexpected client actions, which financial components generally create exposure risk due to shifting market behaviors?
- In Treasury operations, 'VaR' is a widely used measure for:
- What is the target of lending for domestic banks, as a % of their ANBC,under Priority sector lending for micro-enterprises?
- Under the composite criteria for MSME classification, how does an enterprise shift from one category to another? A. An enterprise moves up to the next cat...
- When a senior manager transfers part of his authority and responsibility to subordinates for the completion of specific tasks, the process is known as:
Hey! Ask a query
Please enter email id
The email must be a valid email address.
Please enter Mobile Number
Please enter valid Mobile Number
Please enter your Doubt
