BANKING GENERAL KNOWLEDGE
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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government and other approved securities
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current accounts with sponsor banks
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time deposits with sponsor banks
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gold holdings only
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Detailed explanation-1: -Yes, the Payment banks have to maintain Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR).
Detailed explanation-2: -Under the new norms, an RRB which has not defaulted in maintenance of cash credit ratio (CRR) and statutory liquidity ratio (SLR) would be allowed to expand its branch network. The RBI has removed the conditions like review of irregularities by NABARD and lower NPA level than the RRB average.
Detailed explanation-3: -Statutory Liquidity Ratio or SLR is the minimum percentage of deposits that a commercial bank has to maintain in the form of liquid cash, gold or other securities. It is basically the reserve requirement that banks are expected to keep before offering credit to customers.
Detailed explanation-4: -CRR is a reserve maintained by banks with the RBI. It is a percentage of the banks’ deposits maintained in cash form. SLR is an obligatory reserve that commercial banks must maintain themselves. It is a percentage of commercial banks’ net demand and time liabilities, maintained as approved securities.