Consider the following statements 1 Both CRR and SLR are kept with the Reserve Bank of India 2 CRR i...........

Indian Economic System(BPSC) Money and banking

Consider the following statements:

1. Both CRR and SLR are kept with the Reserve Bank of India.

2. CRR is kept in both cash and non-cash forms, while SLR is kept only in cash form.

3. Net Demand and Time Liabilities (NDTL) refers to the total demand and time liabilities (deposits) of the public that are held by the banks with other banks.

Which of the above statements is/are incorrect ?

1 only

1 and 2 only

2 and 3 only

3 only

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Explanation:

1 and 2 only.

CRR is used by the RBI to control the flow of money in the economy. It regulates the amount of funds that banks can lend.
Statutory Liquidity Ratio popularly called SLR is the minimum percentage of deposits that the commercial bank maintains through gold, cash and other securities.
However, these deposits are maintained by the banks themselves and not with the RBI.