CRR or cash reserve ratio is the minimum proportion / percentage of a bank’s deposits to be held in the form of cash. SLR or statutory liquidity ratio is the minimum percentage of deposits that a bank has to maintain in form of gold, cash or other approved securities.
What is the difference between SLR and LRR?
SLR or Statutory Liquidity Ratio is the amount that commercial banks are supposed to keep with the central bank in form of liquid assets. LRR or Legal Reserve Ratio is the total amount of reserves in form of cash and liquidity assets that are supposed to be kept by commercial bank in Central Bank .
Who decides cash reserve ratio?
Cash Reserve Ratio (CRR) RBI meaning, CRR rate: The Cash Reserve Ratio in India is decided by RBI’s Monetary Policy Committee in the periodic Monetary and Credit Policy.
What’s the difference between SLR and cash reserve ratio?
Both are reserve ratios, but CRR is the actual cash reserve to be maintained in cash alone. Whereas SLR is the liquid ratio which comprises of cash, gold or allowed securities reserves. 2. Who maintains the balance? In the case of SLR, the reserve amounts are kept with the banks themselves i.e. this reserve is calculated and maintained by the bank.
What is the current repo rate and cash reserve ratio?
Recently, the Current Bank Rate is 6.75 % and Cash Reserve Ratio (CRR) is 4 % and Statutory Liquidity Ratio (SLR) is 19.50 % and Repo Rate (RR) is 6.50 % and last Reverse Repo Rate (RRR) is 6.25 %. To know more about Cash Reserve Ratio, you need to go through the below section of this page which is well provided by team of
What is the current interest rate for SLR?
But, the current rate for SLR in 2019 is 19.25% only. If a bank does not comply with the CRR and/or guidelines as required on a daily basis, the banks are charged with interest penalty @3% per annum over and above the applicable bank rate.
What’s the difference between the CRR and the SLR?
Both are reserve ratios, but CRR is the actual cash reserve to be maintained in cash alone. Whereas SLR is the liquid ratio which comprises of cash, gold or allowed securities reserves.
