The current cash reserve ratio (CRR) in India set by the RBI is 5% as on 21st august, 2009.
Cash Reserve ratio
the portion of a deposit that a bank must keep on hand
The variable cash reserve ratio is new method of credit control used by central banks in recent times. The term variable ratio refers to the minimum reserves with the central bank by the commercial banks. As per section 42 (1) of the reserve bank of india, 1934, every scheduled bank has to maintain a minimum cash balance as reserve to be calculated as a percentage on their time and demand liabilities. Variable reserve ratio was used as one of the credit control methods. This methods was suggested by keynes in 1930. This method was first introduced by federal Reserve System of USA in 1935.
The reserve requirement (or cash reserve ratio) is a central bank regulation that sets the minimum reserves each commercial bank must hold (rather than lend out) of customer deposits and notes. It is normally in the form of cash stored physically in a bank vault (vault cash) or deposits made with a central bank. The reserve requirement can be used as an instrument of monetary policy, because the higher the reserve requirement is set, the less funds banks will have to loan out, leading to lower money creation and perhaps ultimately to higher purchasing power of the money previously in use. The required reserve ratio is sometimes used as a tool in monetary policy, influencing the country's borrowing and interest rates by changing the amount of funds available for banks to make loans with.
The Required Reserve Ratio is the percentage/fraction of required reserves that should be held for every dollar of deposits in a depository institution that is required by the Federal Reserve.
the current CRR ratio of 2011 is 6%.
7%
5%
Cash reserve ratio...This is stipulated % of deposits that the bank has to maintain in Cash with RBI.Current CRR =5.5%
cash reserve ratio
As on 19th aug, 09 CRR is 5% and SLR is 24% You can get the latest CRR and SLR from http://www.rbi.org.in/home.aspx
You can find information on a cash reserve ratio when you go to the websites of BanKingawareness, mrunal, AllBankingSolutions, as well as wikinvest, etc.
The current reserve ratio for net transaction accounts totaling more than $43.9 Million is 10%. Source: http://www.federalreserve.gov/monetarypolicy/reservereq.htm#table1
Canada India
decrease current ratio
1) Statutory Liquid Ratio 2) Cash Reserve Ratio
CRR MEANS CASH RESERVE RATIO IS A DECLINE IN THE LIQUIDITY OF A ECONOMY THIS IS CREDIT RESERVE RATION IN WHICH A COMMERCIAL BANK HAVE MAINTAIN A PERCANGE OF BALANCE WITH RBI CRR MEANS CASH RESERVE RATIO IS A DECLINE IN THE LIQUIDITY OF A ECONOMY