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Banking Term: CRR

Find important banking term that is useful in upcoming banking exam.

Apr 22, 2015 10:00 IST
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  • 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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