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Cash Reserve Ratio and Statutory Liquidity Ratio
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This lesson discusses the concepts of CRR and SLR.

Arpita Prakash
NCERTs series initiator at Unacademy 'Educator of the Month' for Feb'19 CBSE 0.1% Merit Certificate holder in Mathematics

U
Unacademy user
Sir can you please explain why Right to vote is not a constitutional right again. I watched your analysis on Prelims 2017 but my Hindi is extremely limited and could not get a clear grasp on your explanations.
Mam 1/20=0.05. how can you write 1/20=5 ??
  1. LIMITS TO CREDIT CREATION AND MONEY MULTIPLIER: RBI decides a certain % of deposits which every bank must keep as reserves , to prevent 'over lending' by banks. Legal requirement; binding on the banks CRR- Cash Reserves Ratio / Required Reserve Ratio / Reserve Ratio CRR-% of deposits to be kept by bank as cash reserves with itself Another ratio-SLR-Statutory Liquidity Ratio-Banks are required to keep some reserves in liquid form in short term


  2. CRR 20 L Bank wil kaap Rs 20 as bank edenve Not Deposit Rs 160 CRR