2025-07-24 21:59
IndustryA Glance at Cash Reserve Ratio
Cash Reserve Ratio (CRR) forms an essential component of the monetary policy tool by the Reserve Bank of India (RBI). It helps control the money supply in the economy. CRR is the minimum percentage of cash deposits that every commercial bank must deposit with the RBI. It is calculated as a percentage of the net demand and time liabilities of commercial banks. The total balances available across fixed deposits, savings accounts, and current accounts are the net demand and time liability of banks.
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A Glance at Cash Reserve Ratio
India | 2025-07-24 21:59Cash Reserve Ratio (CRR) forms an essential component of the monetary policy tool by the Reserve Bank of India (RBI). It helps control the money supply in the economy. CRR is the minimum percentage of cash deposits that every commercial bank must deposit with the RBI. It is calculated as a percentage of the net demand and time liabilities of commercial banks. The total balances available across fixed deposits, savings accounts, and current accounts are the net demand and time liability of banks.
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