The minimum percentage of a bank rsquo s total deposits which is required to be kept with the RBI is...........

The minimum percentage of a bank’s total deposits which is required to be kept with the RBI is called:

CRR

Repo rate

SLR

Reverse Repo Rate

- CRR (Cash Reserve Ratio):

- Correct Answer:

- It is the minimum percentage of a bank's total deposits that must be held in reserve with the RBI.

- Ensures banks do not run into liquidity problems.

- Repo Rate:

- It is the rate at which the RBI lends money to commercial banks.

- Used by the central bank to control inflation.

- SLR (Statutory Liquidity Ratio):

- Refers to the minimum percentage of deposits banks must hold in liquid assets within their vault.

- It involves assets like cash, gold, or other securities.

- Reverse Repo Rate:

- The rate at which the RBI borrows money from commercial banks.

- Helps in controlling liquidity in the economy.

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