Question
Banks in India have to maintain a portion of their
demand and time liabilities with the Reserve Bank of India. This portion is called?Solution
Under cash reserve ratio (CRR), the commercial banks have to hold a certain minimum amount of deposit as reserves with the central bank. The percentage of cash required to be kept in reserves as against the bank's total deposits, is called the Cash Reserve Ratio. CRR is 4%.Â
RBI has proposed to revise the definition of bulk deposits as a ‘Single Rupee term deposit of _______’ for Scheduled Commercial Banks. Â
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