Question

Consider the following statements regarding the Cash Reserve Ratio (CR

  • R : 1. Banks earn interest on the CRR balances maintained with the RBI. 2. An increase in CRR helps in sucking out liquidity from the banking system. 3. CRR is applicable only to Public Sector Banks. Which of the statements above is/are correct? 
A 1 and 2 only
B 2 only
C 2 and 3 only
D 1, 2, and 3
E None of the above
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