Consider the following about the ratios 1 Cash reserve ratio is the minimum percentage of deposits t...........

Economic Affairs Types of Banks and Banking

Consider the following about the ratios:

1. Cash reserve ratio is the minimum percentage of deposits that the bank has to maintain in form of gold, cash or other approved securities.

2. Statutory liquidity ratio is the share of a bank’s total deposit that is mandated by the Reserve Bank of India (RBI) to be maintained with the RBI in the form liquid cash.

3. Liquidity Coverage Ratio (LCR) is highly liquid assets which can easily be converted into cash that banks are required to hold.

Which of the following statement is/are correct?

1 only

1 and 2 only

3 only

1, 2 and 3

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Explanation:

Statutory liquidity ratio is the minimum percentage of deposits that the bank has to maintain in form of gold, cash or other approved securities.
• Cash reserve ratio is the share of a bank’s total deposit that is mandated by the Reserve Bank of India (RBI) to be maintained with the RBI in the form liquid cash.
• Liquidity Coverage Ratio (LCR) is highly liquid assets which can easily be converted into cash that banks are required to hold.