Specifies the minimum fraction of the total deposits of customers, which commercial banks have to hold as reserves either in cash or as deposits with the Central Bank.
Show Hint
- Statutory Liquidity Ratio
- Cash Reserve Ratio
- Repo Rate
- Reverse Repo rate
The Correct Option is B
Solution and Explanation
Step 1: Understand the terms.
- Cash Reserve Ratio (CRR) → Minimum fraction of deposits banks must hold with RBI in cash.
- Statutory Liquidity Ratio (SLR) → Minimum fraction of deposits banks must maintain in approved securities.
- Repo Rate / Reverse Repo Rate → Interest rates, not reserves.
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