Which out of the following is are correct regarding Cash Reserve Ratio CRR a Section 42 of RBI Act 1...........

Economic and social issues (RBI) Monetary and fiscal policies

Which out of the following is/are correct regarding Cash Reserve Ratio (CRR)?

a) Section 42 of RBI Act, 1934 lays foundation for maintaining CRR by scheduled commercial bank with RBI.

b) Section 24 of the Banking Regulations Act, 1949 provide powers to RBI to levy CRR on banks

c) At present CRR is 4 per cent of NDTL

d) Banks have to maintain minimum 95 per cent of the required CRR on a daily basis and 100 per cent on an average basis during the fortnight

Only a, b and c
Only b, c and d
Only a, c and d
All are correct

Only b, c and d

Only a, c and d

All are correct

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Explanation:

According to Section 42 of the Reserve Bank of India Act, 1934, each scheduled commercial bank has to maintain a minimum cash balance with the Reserve Bank as cash reserve ratio (CRR) which is prescribed by the Reserve Bank from time to time as certain percentage of its net demand and time liabilities (NDTL) relating to the second preceding fortnight. As of now, the CRR is 4 per cent of NDTL. Banks have to maintain minimum 95 per cent of the required CRR on a daily basis and 100 per cent on an average basis during the fortnight