How much interest is paid by the RBI on the MONEY deposited under the CRR measure ........

Economic Affairs Money Supply and Monetary Policy

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How much interest is paid by the RBI on the MONEY deposited under the CRR measure?

Equal to the rate of CRR

More than the CRR

Less than the CRR

No interest is paid by the RBI

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Explanation:

Under CRR a certain percentage of the total bank deposits has to be kept in the current account with RBI which means banks do not have access to that much amount for any economic activity or commercial activity. Banks can't lend the money to corporates or individual borrowers, banks can't use that money for investment purposes. So, that CRR remains in current account and banks don’t earn anything on that.