What is CRR Ratio? | Blog Brings Profit For You

1/29/08

What is CRR Ratio?


1. Cash Reserve Ratio or CRR is the amount of depositors' balances that banks must have on hand as cash.

2. The CRR affects the money supply in a country and therefore a hike in CRR implies a decline in liquidity in the economy.

3. Presently RBI has kept CRR unchanged at 7.5% in India.



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