Question
Cash reserve of Scheduled Bank shall be maintained as an
average daily balance with the:Solution
Cash reserves of Schrduled Bank are to be maintained with the Reserve Bank of India. As provided under The Reserve Bank of India Act, 1934 S. 42. Cash reserves of scheduled banks to be kept with the Bank (1) Every bank included in Scheduled II shall maintain with the Bank an average daily balance the amount of which shall not be less than three per cent of the total of the demand and time liabilities in India of such bank as shown in the return referred to in sub-section (2)
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