Question

Consider the following statements:
1) In India , the Cash Reserve Requirement is between 3 to $15\%$ of the total demand and time deposits of the commercial banks.
2) In India , the Statutory Liquidity Requirement is not less than $25\%$ of the total demand and time deposits of commercial banks.
Which of the statements given above is/are correct about the General Credit Control measures used by the RBI?

• A. Only 1
• B. Only 2
• C. Both 1 and 2
• D. Neither 1 nor 2

Answer 1

The correct option is C Both 1 and 2

In current times, the CRR in India remains around 4% of the total demand and time deposits while the SLR remains around 20% of the total demand and time deposits. These values may fluctuate depending upon the periodic monetary policy reviews of the RBI.