Cash Reserve Ratio
This query is : Resolved
25 June 2008
Hi..
Cash reserve Ratio (CRR) is the amount( % of deposits) of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.
Cash reserve Ratio (CRR) is the amount( % of deposits) of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks.
25 June 2008
It is the SPECIFIED percentage of Total DEMAND AND TIME LIABILITIES to be maintained in cash/with RBI.
The SPECIFIED limit is changed by RBI according to the monetary policy & Inflation
Demand and Time liabilities refer to SHAREHOLDER FUNDS, LONGTERM DEBTS/DEPOSITS/BORROWING AND CURRENT BORRWINGS/DEBT/LIABILITIS
The SPECIFIED limit is changed by RBI according to the monetary policy & Inflation
Demand and Time liabilities refer to SHAREHOLDER FUNDS, LONGTERM DEBTS/DEPOSITS/BORROWING AND CURRENT BORRWINGS/DEBT/LIABILITIS
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