Cash Reserve Ratio

Q.  Which of the following is governed by the provisions of Section 42 of the Reserve Bank of India Act, 1934?
- Published on 15 Feb 17

a. Bank rate
b. Reverse Repo Rate
c. SLR
d. CRR

ANSWER: CRR
 
CRR – Cash Reserve Ratio

CRR is governed by the provisions of Section 42 of the Reserve Bank of India Act, 1934.

Please note that earlier RBI was empowered to fix CRR between 3-20% by notification.

However, from 2006 onwards the RBI is empowered to fix the CRR on its discretion without any ceiling.

Related Content

➨ Post your comment / Share knowledge


Enter the code shown above:

(Note: If you cannot read the numbers in the above image, reload the page to generate a new one.)
▲