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what do u mean by CRR?
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Answer Posted / beena joshi
CRR stands for cash reserve ratio. This step is taken by
RBI to suck excess liquidity from the bank. The amount
which banks have to pay to RBI is of their
Time and Demand Depoist.
Time Depoist - refers amount kept in forming of saving
account of customers.
Demand Depoist - refers amount kept in form of fixed
depoist of customers.
It means if bank is having Rs.400000 in total of saving
account and 500000 of fixed deposit and crr is 7.5% it will
have to pay rbi Rs.67500.
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