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The ratio of total deposits that a commercial bank has to keep with RBI is called:
Statutory liquidity ratio
Deposit ratio
Cash reserve ratio
Legal reserve ratio
- Statutory Liquidity Ratio (SLR): This is the percentage of a bank's total deposits that it must maintain in the form of liquid cash, gold, or other securities. It is not kept with the RBI but is maintained by the bank itself.
- Deposit Ratio: This term generally refers to the ratio of different forms of deposits in a bank and is not a prescribed reserve held with the RBI.
- Cash Reserve Ratio (CRR): This is the ratio of a bank's total deposits that must be maintained with the RBI in the form of liquid cash. It helps the RBI control liquidity in the banking system.
- Legal Reserve Ratio: This is not a standard term used in the context of Indian banking regulations.
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