As we all know, Banks in India are required to maintain a portion of their demand and time liabilities with the Reserve Bank of India. What is this portion is called?

Statutory Liquidity Ratio

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Cash Reserve Ratio

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Bank Deposit

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Reverse Repo

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Solution

The correct option is D Cash Reserve Ratio
Cash Reserves Ratio (CRR) refers to the proportion of total deposits of the commercial banks which they must have keep as cash reserves with the central bank. The ratio is fixed by the central bank and is varied from time to time to control the supply of money in the economy depending upon the prevailing situation of inflation or deflation.

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