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Difference between SLR & CRR
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Answer Posted / shinoj.k.s.
SLR restricts the bank’s leverage in pumping more money
into the economy. On the other hand, CRR, or Cash Reserve
Ratio, is the portion of deposits that the banks have to
maintain with the Central Bank.
The other difference is that to meet SLR, banks can use
cash, gold or approved securities whereas with CRR it has
to be only cash. CRR is maintained in cash form with RBI,
whereas SLR is maintained in liquid form with banks
themselves.
| Is This Answer Correct ? | 61 Yes | 9 No |
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