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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 net demand and time liabilities that a bank must maintain in the form of liquid cash, gold, or other securities. It is not kept with RBI but in the bank itself.
- Deposit Ratio: This is not a standard term in banking regulations related to RBI. It may refer to various other ratios banks maintain internally.
- Cash Reserve Ratio (CRR): This is the percentage of a bank's total deposits that must be kept in reserve with the RBI in the form of cash. It is used to ensure liquidity and control over the money supply.
- Legal Reserve Ratio: This term is not used specifically in Indian banking, but may be used interchangeably with CRR or SLR in different contexts.
Correct Answer: Option 3, Cash Reserve Ratio (CRR).
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