The Cash Reserve Ratio refers to
[amp_mcq option1=”the share of Net Demand and Time Liabilities that banks have to hold as liquid assets” option2=”the share of Net Demand and Time Liabilities that banks have to hold as balances with the RBI” option3=”the share of Net Demand and Time Liabilities that banks have to hold as part of their cash reserves” option4=”the ratio of cash holding to reserves of banks” correct=”option2″]
This question was previously asked in
UPSC CDS-1 – 2020
– Banks do not earn any interest on the balances held with the RBI under CRR.
– It is a percentage of the bank’s total deposits (NDTL).