The commercial banks were required to keep some percentages of their time deposits and their demand deposits with the RBI in the form of reserves is known as
A)Statutory Liquidity ratio
B)Cash reserve ratio
C)Moral suasion
D)Open market operation

Question

Quizplus · Accepted Answer

The Cash Reserve Ratio (CRR) is the percentage of a bank's total deposits that must be kept in reserve with the central bank (RBI in India). This is a requirement meant to ensure liquidity and stability in the banking system.

The Commercial Banks Were Required to Keep Some Percentages of Their