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How much perc...

Question

How much percentage of bank deposits are kept as cash reserve for daily transactions in Indian banks

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Solution

Dear Student,

a. Banks basically hold about 15% of the cash deposit as the reserve to meet the needs of the depositors.
b. This is done to meet the needs of its clients who may come to withdraw the cash, thus, bank at lesat have some percentage of cash reserve to cater to their needs.

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