Difference between SLR & CRR

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.

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