2020 · Q52
The Cash Reserve Ratio refers to
General KnowledgeIndian Economy
- Athe share of Net Demand and Time Liabilities that banks have to hold as liquid assets.
- Bthe share of Net Demand and Time Liabilities that banks have to hold as balances with the RBI.
- Cthe share of Net Demand and Time Liabilities that banks have to hold as part of their cash reserves.
- Dthe ratio of cash holding to reserves of banks.
Explanation
The Cash Reserve Ratio is the share of a bank's Net Demand and Time Liabilities that it must hold as balances with the RBI. It is not the liquid-asset requirement (that is SLR) nor the banks' own cash holdings. Hence B.