Net balance maintained in current account by co-operative banks with.....are not treated as cash for the purpose of CRR/SLR.

BANKING GENERAL KNOWLEDGE

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Net balance maintained in current account by co-operative banks with____are not treated as cash for the purpose of CRR/SLR.

A	State Bank of India
B	State Bank of Hyderabad
C	IDBI Bank Limited
D	Canara Bank

Explanation:

Detailed explanation-1: -1.1 All primary (urban) co-operative banks (UCBs) (scheduled as well as non-scheduled) are required to maintain stipulated level of cash reserve ratio (CRR) and statutory liquidity ratio (SLR).

Detailed explanation-2: -The current/ latest rates as per RBI Monetary Policy are: SLR 18.00%, CRR is 4.50%, MSF is 6.75%, Repo Rate is: 6.50%, Reverse Repo Rate is 3.35%, and Bank Rate 6.75%. New Policy Rates by RBI in Indian Banking (as on February 08, 2023):

Detailed explanation-3: -The current CRR level is 4%. To bring the primary urban co-operative banks on par with commercial banks, the central bank reduced the statutory liquidity ratio (SLR) requirement for them by 50 basis points to 22.50%.

Detailed explanation-4: -CRR is a portion of a bank’s deposits that the lender needs to maintain with RBI. This money earns no interest. The current CRR level is 4%. MUMBAI: The Reserve Bank of India on Thursday increased the cash reserve ratio (CRR) for non-scheduled urban co-operative banks (UCBs) by 100 basis points to 4%.

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