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CRR means Cash Reserve Ratio. Banks in India are required to hold a certain proportion of their deposits in the form of cash. However, actually Banks don't hold these as cash with themselves, but deposit such case with Reserve Bank of India (RBI) / currency chests, which is considered as equivlanet to holding cash with themselves.. This minimum ratio (that is the part of the total deposits to be held as cash) is stipulated by the RBI and is known as the CRR or Cash Reserve Ratio. Thus, When a bank's deposits increase by Rs100, and if the cash reserve ratio is 9%, the banks will have to hold additional Rs 9 with RBI and Bank will be able to use only Rs 91 for investments and lending / credit purpose. Therefore, higher the ratio (i.e. CRR), the lower is the amount that banks will be able to use for lending and investment. This power of RBI to reduce the lendable amount by increasing the CRR, makes it an instrument in the hands of a central bank through which it can control the amount that banks lend. Thus, it is a tool used by RBI to control liquidity in the banking system.
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What is the current CRR declared by rbi?
the current CRR declare by RBI is 6%.2011
How much CRR is there at present?
4.75
What is the current CRR and SLR in Bangladesh in 2013?
In 2013, the CRR in Bangladesh was 4%. In the same year, the SLR for Bangladesh was set at 23%.
What is the current CRR and Repo rate?
As per the third quarter review monetary policy on January 29, 2010, RBI hiked the CRR by 75 basis points to 5.75%.
What is the definition of cash reserve ratio?
Cash Reserve Ratio or CRR in India is the amount of money that every bank has to deposit with the RBI per customer. Every time a customer deposits cash to the bank, the bank has to correspondingly deposit a portion of that cash to the RBI. RBI decides this percentage of money that each bank has to deposit with it. The RBI holds the control on the CRR because, the CRR can influence the credit conditions in our country. If the CRR is increased, the amount of liquid cash in circulation in the country would come down and similarly if the CRR is decreased, the cash circulation in the country would increase. Say if the CRR of the country is 10%, and you go to a bank to deposit Rs. 1000/- the bank will have to deposit at least Rs. 100/- with RBI. The remaining funds can be used by the bank to grant loans to other customers and earn an income for itself
What is ment by CRR in trading?
What is ment by CRR in trading?"
What is current CRR of Pakistan?
present CRR = 5.25 % SLR = 25.0 % These rates are subjected to change quarterly
What do you meant by Crr in banking terms?
CRR means Cash Reserve Ratio.
Minimum CRR LIMIT?
there is no minimum limit of CRR in India but the maximum limit is 15%
What is the current CRR and SLR rate of Bangladesh for 2012?
crr=6% slr=19%
What is CRR rate by RBI 2010?
The CRR rate is 3% to 15% fixed by RBI.
What is the current CRR declared by rbi?
the current CRR declare by RBI is 6%.2011
What is the current CRR and SLR rate for 2011?
The present rate of CRR is 6% and SLR is 24%.Thank you.
What is current CRR in INDIA?
Cash reserve ratio...This is stipulated % of deposits that the bank has to maintain in Cash with RBI.Current CRR =5.5%
What is CRR rate by RBI of India?
the Repo rate, Reserve repo rate and CRR as of 03 January 2009 are as follows: Repo Rate: 5.6% CRR: 5% Reverse Repo rate: 4.1% Source: RBI
What is the cureent CRR?
20% 20%
Is CRR is included in SLR?
yes
