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Give tips. CRR Cash Reserve Ratio and Statutory Liquidity Proof (SLR)

 Give tips. CRR Cash Reserve Ratio  (Cash Reserve Ratio CRR) Statutory Liquidity Proof (SLR) North : Section 42 (1) of the Reserve Bank of India Act empowers the central bank to make changes in the cash reserves of commercial banks. Accordingly, the central bank controls the credit formation of commercial banks by changing the number of cash reserves. "Cash reserves The amount of cash deposited by a commercial bank with a certain amount of their total deposit as a reserve fund is called a cash reserve fund." The central bank has the right to decide what the ratio should be. The central bank may change it from time to time depending on the situation. That change affects the creditworthiness of commercial banks. At a time when the country is in a boom. Commodity prices are rising, inflation is on the rise, and money in the economy is running high. The central bank's objective is to curb it. Central banks then increase the number of cash reserves. As a result, high-powered m...
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