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❤️ Cash Reserve Ratio (CRR)❤️


👍The average daily balance that a bank is required to maintain with the
Reserve Bank as a share of such percentage of its Net Demand and Time
Liabilities (NDTL) that the Reserve Bank may notify from time to time in
the Gazette of India.

👍Banks can’t lend money to corporates or individual
borrowers, banks can’t use that money for investment purposes.

👌**importance of Cash Reserve Ratio :**👌

👍A cash reserve ratio is a prominent tool for RBI.
it is used for controlling the liquidity and inflation/deflation in the country's economy.
RBI reserves the right to modify the Cash Reserve Ratio at any given time.