The portion of total deposits of a commercial bank which it has to keep with RBI in the form of cash…
The Cash Reserve Ratio (CRR) is the specified minimum fraction of total Net Demand and Time Liabilities (NDTL) that commercial banks are statutorily required to maintain as…
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The portion of total deposits of a commercial bank which it has to keep with RBI in the form of cash reserves is termed as :
Answer and explanation
Correct answer A
The Cash Reserve Ratio (CRR) is the specified minimum fraction of total Net Demand and Time Liabilities (NDTL) that commercial banks are statutorily required to maintain as cash balances with the Reserve Bank of India under Section 42(1) of the RBI Act. Therefore, 'CRR' is correct.
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UGC NET Commerce