BUSINESS ADMINISTRATION
BUSINESS POLICY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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a) Statutory Liquidity Ratio
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b) Cash Reserve Ratio
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c) Bank Rate Reverse
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d) Repo Rate
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Unattempted
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Detailed explanation-1: -The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve Bank of India with reference to the demand and time liabilities (NDTL) to ensure the liquidity and solvency of the Banks.
Detailed explanation-2: -4th May 2022 – Reserve Bank of India (RBI) raised cash reserve ratio (CRR) by 50 basis points to 4.50% effectvie May 21. Cash Reserve Ratio (CRR) is the share of a bank’s total deposit that is mandated by the Reserve Bank of India (RBI) to be maintained with the latter as reserves in the form of liquid cash.
Detailed explanation-3: -Net Demand and Time Liabilities (NDTL): It is the difference between the sum of demand and time liabilities (deposits) of a bank (with the public or the other bank) and the deposits in the form of assets held by the other banks.
Detailed explanation-4: -Time liabilities refer to the liabilities which the commercial banks are liable to repay to the customers after an agreed period, and demand liabilities are customer deposits which are repayable on demand.