Question
What is NOT correct about CRR (Cash Reserve Ratio)?
i. The CRR is determined by a percentage of Net Demand and Time Liabilities ii. Investments in Cash, Gold and approved Government Securities are counted for CRR iii. Maximum limit of CRR is 20% and minimum is 3%.Solution
CRR is to be kept as cash or as deposits with the RBI. The minimum CRR level of 3.0 per cent and the maximum CRR level of 20 per cent of NDTL remain as per the Section 42(1) of the Reserve Bank of India Act, 1934.
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