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Banking Term: CRR

Apr 22, 2015 10:00 IST
    • CRR stands for Cash Reserve Ratio
    • CRR is the ratio of banks total deposits for which they are bound to keep with the RBI.
    • It could be between minimum 3% to maximum 15%
    • CRR is the most effective measure to check inflation
    • If CRR increases bank are bound to keep more money with the RBI & the liquidity in market decreases & the value of money increases & inflation come down.

     

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