What is legal reserve ratio???
CBSE, JEE, NEET, CUET
Question Bank, Mock Tests, Exam Papers
NCERT Solutions, Sample Papers, Notes, Videos
Posted by Nitin Chhillar 4 years, 9 months ago
- 1 answers
Related Questions
Posted by Niyati Garg 1 year, 2 months ago
- 0 answers
Posted by Sakshi Singh 2 months, 4 weeks ago
- 1 answers
Posted by Dipika Sharma 1 year, 3 months ago
- 0 answers
Posted by Nandita Sharma 1 year, 3 months ago
- 1 answers
Posted by Naman Jain 1 year, 2 months ago
- 1 answers
Posted by Rijum Karlo 1 year, 3 months ago
- 0 answers
Posted by Mehar Ansari 1 year, 3 months ago
- 0 answers
Posted by Shruti Singh 1 year, 3 months ago
- 0 answers
myCBSEguide
Trusted by 1 Crore+ Students
Test Generator
Create papers online. It's FREE.
CUET Mock Tests
75,000+ questions to practice only on myCBSEguide app
Yogita Ingle 4 years, 9 months ago
Legal reserve ratio refers to the minimum fraction of deposits which the banks are mandate to keep as cash themselves. The legal reserve ratio is fixed by Central bank. Legal Reserve Ratio has two components:
Cash Reserve Ratio (CRR)-It refers to cash reserves of Commercial Banks with the Central Bank as a percentage of their deposits.
Statutory Liquidity Ratio (SLR) refers to reserves in the form of liquid assets (including (i) cash, (ii) gold, and (iii) approved securities) with the Commercial Banks themselves, as a percentage of their total deposits.
Both CRR and SLR are fixed by the Central Bank, and both are a legal binding for the Commercial Banks. In this sense, both CRR and SLR are legal reserve ratios.
2Thank You