Glossary:


Term - C : Cash Reserve Ratio (CRR)

Cash Reserve Ratio (CRR)


Cash Reserve Ratio (CRR)

This is the mandatory balance that commercial banks have to keep with the RBI, as a percentage of their total demand and time liabilities. Since this reserve is not available to the banks for lending, by raising or lowering the ratio, the central bank can influence lending and interest rates.
Previous
Next