GK
BANKING AWARENESS AND SEBI
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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What are the steps taken by RBI, in order to meet demand and time liabilities of banks in time?
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Banks are asked to maintain CRR
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Banks are asked to keep mandatory regulatory cash reserve with RBI
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Both (a) and (b)
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None of these
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Explanation:
Detailed explanation-1: -This is the RBI’s way of controlling the excess flow of money in the economy. The cash balance that is to be maintained by scheduled banks with the RBI should not be less than 4% of the total NDTL, which is the Net Demand and Time Liabilities.
Detailed explanation-2: -i.e. Net Demand and Time Liabilities (NDTL) = (Demand Liabilities +Time Liabilities + Other Demand and Time Liabilities + Liability to Others) – Assets with the Banking System.
There is 1 question to complete.