What is CRR in the Indian Economy?

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Solution

CRR stands for Cash Reserve Ratio. It is a portion of the deposits that are required to be kept as a reserve by banks within the bank or with RBI so that this amount can be paid to the bank customers if there is any such requirement.

Also read:

Credit Creation by Commercial Bank

Difference Between Monetary Policy and Fiscal Policy

Limits to Credit Creation and Money Multiplier

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