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explain concept of LRR Related: Chapter 5 and 6: Money and Banking - ...
The two components of Legal Reserve Ratio are:
(i) Cash Reserve Ratio (CRR) It refers to the minimum percentage of a bank’s total deposits required to be kept with the Central Bank. Commercial banks have to keep with the Central Bank, a certain percentage of their deposits in the form of cash reserves as a matter of law.
(ii) Statutory Liquidity Ratio (SLR) Every bank is required to maintain a fixed percentage of its assets in the form of cash or other liquid assets, called SLR with itself. The major components of liquid assets are cash in hand, reserves with the RBI and government and other approved securities.
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explain concept of LRR Related: Chapter 5 and 6: Money and Banking - Chapter Notes, Macro Economics, class 12
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explain concept of LRR Related: Chapter 5 and 6: Money and Banking - Chapter Notes, Macro Economics, class 12 for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about explain concept of LRR Related: Chapter 5 and 6: Money and Banking - Chapter Notes, Macro Economics, class 12 covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for explain concept of LRR Related: Chapter 5 and 6: Money and Banking - Chapter Notes, Macro Economics, class 12.
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