Consider the following statements regarding “Cash Reserve Ratio”: 1. It is fixed by the central government. 2. It is the ratio of the total deposits of a bank in India which is kept with the RBI in the form of cash. Which of the statements given above is/are correct? |ForumIAS

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Q. Consider the following statements regarding “Cash Reserve Ratio”:
1.It is fixed by the central government.
2.It is the ratio of the total deposits of a bank in India which is kept with the RBI in the form of cash.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: C

Notes:

Explanation: The cash reserve ratio (CRR) is the ratio (fixed by the RBI) of the total deposits of a bank in India which is kept with the RBI in the form of cash. This was fixed to be in the range of 3 to 15 per cent.

Source: Ramesh Singh

Q. Consider the following statements regarding “Cash Reserve Ratio”: 1.It is fixed by the central government. 2.It is the ratio of the total deposits of a bank in India which is kept with the RBI in the form of cash. Which of the statements given above is/are correct?

Post-Mains Strategy Session by Mr. Ayush Sinha | ForumIAS

Q. Consider the following statements regarding “Cash Reserve Ratio”:
1.It is fixed by the central government.
2.It is the ratio of the total deposits of a bank in India which is kept with the RBI in the form of cash.
Which of the statements given above is/are correct?