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What is The percentage of deposits that a bank must retain for depositors called?
Wiki User
∙ 13y ago
It is called Cash Reserve Ratio. It is the % of money from the amount collected from depositors that needs to be maintained as deposit with the reserve bank. The bank cannot use this money for its financial needs.
For Ex: if the CRR is 5% and you deposit $1000 into your account, the bank has to deposit $50 against your name
Wiki User
∙ 13y ago
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