Cash Reserve Ratio

CASH RESERVE RATIO [CRR]
INTRODUCTION OF CASH RESERVE RATIO

Cash Reserve Ratio is a specified minimum fraction of the total deposits of customers, which
commercial banks have to hold as reserves with the central bank. Cash Reserve Ratio (CRR)
is a specified minimum fraction of the total deposits of customers, which commercial banks
have to hold as reserves either in cash or as deposits with the central bank. CRR is set
according to the guidelines of the central bank of a country. The amount specified as the CRR
is held in cash and cash equivalents, is stored in bank vaults or parked with the Reserve Bank
of India. The aim here is to ensure that banks do not run out of cash to meet the payment
demands of their depositors. CRR is a crucial monetary policy tool and is used for controlling
money supply in an economy. CRR specifications give greater control to the central bank
over money supply. Commercial banks have to hold only some specified part of the total
deposits as reserves. This is called fractional reserve banking. Cash Reserve Ratio refers to
the fraction of the total Net Demand and Time Liabilities (NDTL) of a Scheduled
Commercial Bank held in India, that it has to maintain as cash deposit with the Reserve Bank
of India (RBI). The requirement applies uniformly to all banks in the country irrespective of
an individual banks financial situation or size. In contrast, certain countries e.g. China
stipulates separate reserve requirements for large and small banks. Cash reserve ratio is
regulated by Reserve Bank of India, cash reserve ratio is the percentage of funds that a
commercial and schedule banks excluding regional and rural banks have to keep with RBI.
The main reason to maintain the CRR is to keep a bank liquid at any point of time. Whenever
banks keep low CRR it increases the availability of the money with the bank for credit in the
system. This eases the pressure on interest rates and interest rates goes down. And also when
the money is available with the bank and if it is ready to give the loan to the different
industries at lower interest rate it directly adds fuel to the economy growth. Whenever the
RBI increases CRR the amount at the banks comes down automatically. International Journal
of Marketing, Financial Services & Manage me Generally CRR is maintained by RBI to
control the liquidity in the market and to control the inflation. If there is any increase is CRR
it slows down the growth of the economy.
IMPACT OF CASH RESERVE RATIO ON INDIAN

ECONOMY AND STOCK MARKET
Impact on interest rates: Interest rates are cost of the loan. If there is hike in the CRR the
banks must deposit more amount of cash with RBI or if there is any decrease in CRR the
banks will deposit less amount of cash with RBI. Due to CRR banks may have more or less
cash for lending and rate. Impact on investment: Firms operating in the economy needs
money for expansion and for various purpose. If interest rates are high due to increase in
CRR, all firms may not get money from the banks. Due to this growth of the economy slows
down. Impact on common public: Public might take loan for availing some services. Due to
high interest rates public m ay consume less. If CRR is increased the public will consume less
and will have direct impact GDP. Impact on Exports and Imports :If interest rates are high
firms will consume less amount and they reduced their expansion plans, it makes the
production of goods and services low, since the production has decreased, People will
purchase from foreign markets to get their desired products. Imports will increase and exports
decreases, ultimately put downward pressure on GDP by reducing Exports.
CRR IMPACT ON STOCK MARKETS

Hikes in CRR leading to raise interest rates have several implications including. Slowing
down the overall growth in the economy; this effectively means that demand for goods and
services, and investment activity, gets adversely impacted. Apart from the fact that overall
growth is impacted, companies take a hit on account of higher interest costs that they have to
bear on their outstanding loans (to the extent their cost of funds is not locked in). Since some
investors tend to leverage and invest in the stock markets, higher interest rates increase
expectation of returns from the stock markets; this has the impact of lowering current stock
prices. An overall decline in stock prices has a cascading effect as leveraged positions are
unwound (on account of meeting margin requirements), leading to still lower stock prices. In
Indian equity markets there are three levels of macro risk; a high P/E, a relatively overvalued
rupee and interest rates that have stayed relatively low considering the level of economic
growth, and we associate these things with growth. The P/E multiples are high because
growth is strong, the rupee has been firm because strong growth has attracted capital and that
capital has helped keep interest rates low. With CRR hike RBI is about to end the growth
party and if growth begins to slow down then you are likely to see a lower P/E, a low rupee
2
and a potentially higher interest rates. A cut in CRR would lead to a fall in interest rate. A cut
in interest rates would make savings in banks unattractive. Thus, depositors may move to the
stock market at a time when the revival of the bourses is crucial for regenerating Indian
industry. Thus a reduction in CRR would boost the securities prices and players are also
expecting the Government to align the savings rate to the same structural levels.
(CRR), statutory liquidity ratio (SLR), prime lending rates (PLR),
Repo Rate etc, to control the money supply of the country. This paper aim to discuss about
the impact of reverse repo rate and cash reverse ratio in the share price of banking companies
listed in National Stock Exchange. The analysis of the study showed that the security prices
reacted to the announcements of reverse repo rate and cash reserve ratio. We considered the
following determinants Oil prices, Gold price, Cash Reserve Ratio, Food Price Inflation, Call
Money Rate, Dollar Price, F D I, Foreign Portfolio Investment and Foreign Exchange
Reserve (Forex). We have taken into consideration the Multicollinearity problem among
different macroeconomic variables and attempted to eliminate it.
CRR IN DEMAND AND TIME LIABILITIES (DTL)
Cash Reserve Ratio (CRR) is the amount of funds that all Scheduled Commercial Banks
(SCB) excluding Regional Rural Banks (RRB) are required to maintain without any floor or
ceiling rate with RBI with reference to their total net Demand and Time Liabilities (DTL) to
ensure the liquidity and solvency of Banks.
In terms of Section 42(1) of the RBI Act 1934, Scheduled Commercial Banks are required to
maintain with RBI an average cash balance, the amount of which shall not be less than 3%
and higher rate not exceeding 20% of the total of the Net Demand and Time Liabilities
(NDTL) in India.
Demand Liabilities are liabilities which are payable on demand and Time Liabilities are those
which are payable otherwise than on demand.
The components for computation of DTL include Demand Liabilities, Time Liabilities and
Other Demand & Time Liabilities (ODTL) as under:-
Demand Liabilities:Current Deposits, Savings bank deposits, Margins held against letters of credit/guarantees,
Balances in overdue fixed deposits, Outstanding DDs, Unclaimed deposits, Credit balances in
the Cash Credit account and deposits held as security for advances which are payable on
demand & Money at Call and Short Notice from outside the Banking System (Liability to
others).
Time Liabilities:Fixed deposits, cash certificates, cumulative and recurring deposits, time liabilities portion of
savings bank deposits, staff security deposits, margin held against letters of credit, if not
payable on demand, & deposits held as securities for advances which are not payable on
demand and Gold deposits.
Other Demand and Time Liabilities (ODTL):ODTL include interest accrued on deposits, bills payable, unpaid dividends, suspense account
balances representing amounts due to other banks or public, net credit balances in branch
adjustment account, any amounts due to the banking system which are not in the nature of
deposits or borrowing.
4
Example:If a person deposits Rs 1,000 in his account, the bank can use it to lend others, but it has to
deposit a percentage of that amount with the RBI. Hence, CRR is 4%, the lender will deposit
Rs.40 with the RBI and has Rs.960 left at its disposal.
If a person deposits Rs 1,000 in his account, the bank can use it to lend others, but it has to
deposit a percentage of that amount with the RBI. Hence, if CRR is 5%, the lender will
deposit Rs.50 with the RBI and has Rs.950 left at its disposal.
HOW DOES CRR AFFECT ECONOMY?
Lower CRR means bank can give more money as loan = lower interest rates = cheap
loan = more people take loan to start business or building house or buying car = boost
in economy. However, can also lead to inflation, if people have more cash in their
hands than the items available for purchase in the market.
Higher CRR = bank can give less money as loan = Higher interest rate = it becomes
expensive to start a new factory, buy a new house / car/bike. This can curb inflation
but may also lead to slowdown in economy, because people wait for the interest rates
to go down, before taking loans.
With every cut in 25 basis points in CRR it would infuse the liquidity of Rs.16000
crore
How Does A CRR Hike Help In Lowering Inflation?

Whenever the RBI hikes the CRR rate, a lot of excess liquidity is sucked out of the markets.
Banks have lesser cash available with them to deploy as loans. Consequently, to maintain
their profit margins, they have to increase the lending rates at which they disburse loans. As
loan rates go up, consumers tend to borrow less and eventually spend less. Thus the demand
for goods and services goes down. All inflated prices start coming down due to the decrease
in demand. And as prices start moving downwards, inflation starts coming down.
Impact of CRR Hike on various segments and sectors

On Equity Market: CRR Hike will bring less liquidity into the banking system. If banks have
less cash, they will lend less money or will not invest in equities.
On Commodity Market: CRR Hike will bring less liquidity in the market and people will
invest less in Commodity market. On Bond Market: CRR Hike will help Bond market as long
term yield will increase. On Banking: Increased interest rates lead to lower credit growth and
further bring about the overall profitability. Thus, banking stocks might face selling pressure.
On Real estate: CRR hike will reduce liquidity in the markets. Consumers will be less
inclined to borrow home loans at higher interest rates resulting in a fall in demand. Also
construction companies will have to borrow at higher rates thus increasing their overheads
On Auto: The same applies to autos. The demand for automobiles will decrease due to
increased lending rates and the cost to company will rise sharply due to increased borrowing
rates. Hence, auto stocks can also see a downturn.
6
UNDERSTANDING THE REPO RATE, CASH RESERVE

RATIO AND THE RESERVE BANK OF INDIA
The Reserve Bank of India (RBI) on Tuesday cut the repo rate as well as the cash reserve
ratio (CRR) by 25 basis points, or 0.25 percent. Heres a quick explanation of what that
means. It will be obvious to some readers, but many people havent studied economics and
are unfamiliar with the terms.
The repo rate, which now stands at 7.75 percent, is the rate at which the central bank lends
money to Indian banks. As the repo rate goes down, it gets cheaper for banks to borrow
money. That makes it easier for people to borrow money at cheaper rates too. As more people
borrow money, which ought to be the result of action like this, theyll spend more money.
Thats good for the Indian economy.
The CRR, meanwhile, is the amount of funds banks must keep with the RBI. The CRR is at 4
percent, which means for every 100 rupees, the bank keeps 4 rupees with the RBI in cash.
The ratio indicates the policy stance of the bank and is used as a tool to manage liquidity, or
the amount of money in the system. By changing this ratio, the central bank can control the
amount of liquidity. Tuesdays cut would release 180 billion rupees (or about $3.35 billion)
into the system, meaning banks would have more money to lend to borrowers.
Cutting the repo rate doesnt always cut lending rates, of course. Banks might worry that
lower lending rates could hurt their profits. However, IDBI Bank cut its base rate after the
RBI announcement, and the head of Indias top lender, State Bank of India, said banks likely
will cut lending rates.
Why does the RBI need to do things like this? The central bank must keep inflation in check
while stimulating growth. This is important to India, whose growth rate in recent years has
slowed. That has led to questions about the countrys prosperity, the future of its swelling
ranks of middle-class citizens, and the possibility that years of economic success for the
country and millions of its inhabitants might not last.
Avoiding higher inflation also is important. Data released earlier this month suggests that
inflation is at a three-year low, which makes it easier for the RBI to cut rates. Still, there is a
fear it could rise again, especially after a rise in diesel prices. Other concerns include fiscal
deficit and current account deficit. Thats the reason that the RBI hinted further rate cuts
would be conditional on the governments moves to control fiscal deficit. Hence, the RBI
remains cautious about rate cuts going ahead. The Sensex fell more than 100 points on
Tuesday because of this.
The next development to watch out for is the release of the annual budget on Feb. 28. As
Andy Mukherjee notes at Reuters Breaking views:
Finance minister P. Chidambaram has promised fiscal consolidation and other reforms. If he
avoids the temptation to indulge instead in vote-buying populist measures that increase the
governments spending commitments, there may be hope not just of another rate cut, but of a
recovery too.
7
CASH RESERVE RATIO IN RBI

The present banking system is called a fractional reserve banking system, as the banks are
required to keep only a fraction of their deposit liabilities in the form of liquid cash with the
central bank for ensuring safety and liquidity of deposits. The Cash Reserve Ratio (CRR)
refers to this liquid cash that banks have to maintain with the Reserve Bank of India (RBI) as
a certain percentage of their demand and time liabilities. For example if the CRR is 10% then
a bank with net demand and time deposits of Rs 1,00,000 will have to deposit Rs 10,000 with
the RBI as liquid cash. How is CRR used as a tool of credit control?
CRR was introduced in 1950 primarily as a measure to ensure safety and liquidity of bank
deposits, however over the years it has become an important and effective tool for directly
regulating the lending capacity of banks and controlling the money supply in the economy.
When the RBI feels that the money supply is increasing and causing an upward pressure on
inflation, the RBI has the option of increasing the CRR thereby reducing the deposits
available with banks to make loans and hence reducing the money supply and inflation.
Does RBI impose on penalty on banks for defaulting on CRR deposits?
The RBI has the authority to impose penal interest rates on the banks in respect of their
shortfalls in the prescribed CRR. According to Master Circular on maintenance of statutory
reserves updated up to June 2008, in case of default in maintenance of CRR requirement on
daily basis, which is presently 70 per cent of the total CRR requirement, penal interest will be
recovered at the rate of three 3% per annum above the bank rate on the amount by which the
amount actually maintained falls short of the prescribed minimum on that day. If shortfall
continues on the next succeeding days, penal interest will be recovered at a rate of 5% per
annum above the bank rate. In fact if the default continues on a regular then RBI can even
cancel the banks licence or force it to merge with a larger bank. Does CRR apply to all
scheduled banks? The CRR is applicable to all scheduled banks including the scheduled
cooperative banks and the Regional Rural Banks (RRBs). The present level of CRR is 6.5%.
Previously, there was a floor of 3% and ceiling of 20% on the CRR that could be imposed by
the RBI; however since 2006 there is no minimum or maximum level of CRR that needs to
be fixed by the central bank of India. At present, the RBI does not pay any interest to the
banks on the CRR deposits. Prior to 1962, a separate CRR was fixed in respect of demand
and time liabilities, however after 1962 the separate CRRs were merged and one CRR came
into effect for both demand and time deposits of banks with RBI.
8
THE IMPORTANCE OF THE CASH RESERVE RATIO

Cash reserves help the economy operate smoothly and help reduce the risk of money
shortages.Cash reserve ratios measure the percentage of total bank deposits on hand in the
form of cash. In many countries, including the U.S., central banking authorities set minimum
cash reserve ratios in an attempt to regulate monetary policy. The level of the cash reserve
ratio within an area can provide key information about the current state of the economy, and
may also offer insight into potential economic changes in the near future.
Features
The cash reserve ratio measures the liquidity of a banking institution, and represents the
amount of cash on hand as a percentage of total transactions. The U.S. Federal Reserve sets
minimum cash reserve ratios for all banks in the U.S., and includes cash on hand as well as
cash deposited at Federal Reserve bank locations. These ratios apply to transaction accounts
only, and do not include CDs and other private loan instruments. As of April 2011, the
Federal Reserve requires 0 cash reserves for deposits up to $10.7 million. Banks with
transactions ranging from $10.7 to $58.8 million must maintain 3 percent cash reserves, while
10 percent is required for deposits over $58.8 million.
Importance in the U.S.

The U.S. originally instituted cash reserve policies as early as 1863, when all banks were
required to maintain 25 percent of all deposits. These early reserve goals were designed to
ensure bank customers could withdraw funds as needed, which helped to instill confidence in
the still-growing U.S. banking system. By 1913 when the Federal Reserve was created, cash
reserve rates were lowered to between 12 and 18 percent. By 1990, rates were lowered again,
to between 3 and 10 percent. In the U.S., this relatively small cash reserve ratio is in place to
help reduce fluctuations in the money market and to ensure adequate cash supplies. It also
helps to prevent growth in the credit market from occurring too quickly, and ensures the
economy grows slowly and cautiously.
Importance in Other Countries

Outside of the U.S., many countries rely on cash reserve ratio as a tool for controlling the
economy. While the U.S. rarely makes changes in cash reserve requirements, developing
countries may vary this ratio quiet often. In 2010, for example, China increased its cash
reserve ratio six times in an attempt to reduce the availability of credit and slow inflation.
India and other large economies also alter this ratio frequently in an attempt to affect interest
rates or inflation.
Considerations
While the availability of cash reserves provides numerous benefits to society and the
economy, it also poses a serious drawback in the form of lost interest. Banks do not earn
interest on cash reserves, which results in reduced earnings for the bank and for its customers.
In a 1992 release, the Federal Reserve estimated this loss to exceed $700 million per year in
pre-tax earnings, which represents a loss of roughly 2 percent.
10
COMMERCIAL BANKS ARE REQUIRED TO CASH

RESERVE RATIO (CRR) WITH RBI
Maintenance of CRR
In terms of Section 42(1) of the RBI Act 1934, Scheduled Commercial Banks are required to
maintain with RBI an average cash balance, the amount of which shall not be less than three
per cent of the total of the Net Demand and Time Liabilities (NDTL) in India, on a fortnightly
basis and RBI is empowered to increase the said rate of CRR to such higher rate not
exceeding twenty percent of the Net Demand and Time Liabilities (NDTL) under the RBI
Act, 1934. At present, effective from the fortnight beginning June 14, 2003, the rate of CRR
is 4.50 per cent of the NDTL.
Maintenance of incremental CRR

In terms of Section 42(1A) of RBI Act, 1934, the Scheduled Commercial Banks are required
to maintain, in addition to the balances prescribed under Section 42(1) of the Act, an
additional average daily balance, the amount of which shall not be less than the rate specified
by the RBI in the notification published in the Gazette of India, such additional balance being
calculated with reference to the excess of the total of the NDTL of the bank as shown in the
return referred to in section 42(2) of the RBI Act, 1934 over the total of its NDTL at the close
of the business on the date specified in the notification. At present no incremental CRR is
required to be maintained by the Scheduled Commercial Banks.
Computation of Demand and Time Liabilities

Liabilities of a bank may be in the form of demand or time deposits or borrowings or other
miscellaneous items of liabilities. Liabilities of the banks may be towards banking system (as
defined under Section 42 of RBI Act, 1934) or towards others in the form of Demand and
Time deposits or borrowings or other miscellaneous items of liabilities. Reserve Bank of
India has been authorized in terms of Section 42 (1C) of the RBI Act, 1934 to classify any
particular liability and hence for any doubt regarding classification of a particular liability, the
banks are advised to approach RBI for necessary clarification.
11
Demand Liabilities
'Demand Liabilities' include all liabilities which are payable on demand and they include
current deposits, demand liabilities portion of savings bank deposits, margins held against
letters of credit/guarantees, balances in overdue fixed deposits, cash certificates and
cumulative/recurring deposits, outstanding Telegraphic Transfers (TTs), Mail Transfer (MTs),
Demand Drafts (DDs), unclaimed deposits, credit balances in the Cash Credit account and
deposits held as security for advances which are payable on demand. Money at Call and Short
Notice from outside the Banking System should be shown against liability to others.
Time Liabilities
Time Liabilities are those which are payable otherwise than on demand and they include
fixed deposits, cash certificates, cumulative and recurring deposits, time liabilities portion of
savings bank deposits, staff security deposits, margin held against letters of credit if not
payable on demand, deposits held as securities for advances which are not payable on
demand, India Millennium Deposits and Gold Deposits.Borrowings from banks abroad
Loans/borrowings from abroad by banks in India will be considered as 'liabilities to others'
and will be subject to reserve requirements.
Arrangements with correspondent banks for remittance facilities

When a bank accepts funds from a client under its remittance facilities scheme, it becomes a
liability (liability to others) in its books. The liability of the bank accepting funds will
extinguish only when the correspondent bank honours the drafts issued by the accepting bank
to its customers. As such, the balance amount in respect of the drafts issued by the accepting
bank on its correspondent bank under the remittance facilities scheme and remaining unpaid
should be reflected in the accepting bank's books as an outside liability and the same should
also be taken into account for computation of NDTL for CRR/SLR purpose. The amount
received by correspondent banks has to be shown as 'Liability to the Banking System' by
them and not as 'Liability to others' and this liability could be netted off by the correspondent
banks
against
the
inter-bank assets.
Likewise
sums
placed
by banks
issuing
drafts/interest/dividend warrants are to be treated as 'Assets with Banking System' in their

books and can be netted off from their inter-bank liabilities.
12
Other Demand and Time Liabilities (ODTL)

Other Demand and Time Liabilities (ODTL) include interest accrued on deposits, bills
payable, unpaid dividends, suspense account balances representing amounts due to other
banks or public, net credit balances in branch adjustment account, any amounts due to the
"Banking System" which are not in the nature of deposits or borrowing. Such liabilities may
arise due to items, like (i) collection of bills on behalf of other banks, (ii) interest due to other
banks and so on. If a bank cannot segregate from the total of "Other Demand and Time
Liabilities" (ODTL) the liabilities to the banking system, the entire 'Other Demand and Time
Liabilities' may be shown against item II ( c ) 'Other Demand and Time Liabilities' of the
return in Form 'A' and average CRR is required to be maintained on it by all Scheduled
Commercial Banks; Participation Certificate issued to other banks, the balances outstanding
in the blocked account pertaining to segregated outstanding credit entries for more than 5
years in inter branch adjustment account, the margin money on bills purchased / discounted
and gold borrowed by banks from abroad, also should be included in ODTL.
Liabilities not to be included for DTL/NDTL computation

The under-noted liabilities will not form part of liabilities for the purpose of CRR :
a) Paid up capital, reserves, any credit balance in the Profit & Loss Account of the bank,
amount availed of as refinance from the RBI, and apex financial institutions like Exim Bank,
IDBI, NABARD, NHB, SIDBI etc.
b) Amount of provision for income tax in excess of the actual estimated liabilities.
c) Amount received from DICGC towards claims and held by banks pending adjustments
thereof.
d) Amount received from ECGC by invoking the guarantee.
e) Amount received from insurance company on ad-hoc settlement of claims pending
Judgment of the Court.
f) Amount received from the Court Receiver.
g) The liabilities arising on account of utilization of limits under Bankers Acceptance Facility
(BAF)
h) Inte bank term deposits/term borrowing liabilities of original maturity of 15 days and
above and up to one year with effect from fortnight beginning August 11, 2001.
13
Exempted Categories
Scheduled Commercial Banks are exempted from maintaining average CRR on the following
liabilities :
i) Liabilities to the banking system in India as computed under Clause (d) of the Explanation
to Section 42(1) of the RBI Act, 1934.
ii) Credit balances in ACU (US$) Accounts.
iii) Transactions in Collateralized Borrowing and Lending Obligation (CBLO) with Clearing
Corporation of India Ltd. (CCIL).
iv) Demand and Time Liabilities in respect of their Offshore Banking Units
(OBUs).Although Scheduled Commercial Banks are exempted from maintaining average
CRR on the above liabilities, they are required to maintain 3 per cent statutory reserve
thereon. Scheduled Commercial Banks are not required to include inter-bank term deposits /
term borrowing liabilities of original maturities of 15 days and above and upto one year in
'Liabilities to the Banking System' (item I of Form 'A'). Similarly banks should exclude their
inter-bank assets of term deposits and term lending of original maturity of 15 days and above
and up to one year in 'Assets with the Banking System' (item III of form A) for the purpose of
maintenance of CRR. This concession is not available for maintenance of SLR.
Loans out of FCNR (B) Deposits and IBFC Deposits

Loans out of Foreign Currency Non Resident Accounts (Banks), (FCNR [B] Deposits
Scheme) and Inter-Bank Foreign Currency (IBFC) Deposits should be included as part of
bank credit while reporting in Form A. For the purpose of reporting banks should convert
their FCNR (B) Deposits, Overseas foreign currency assets and bank credit in India in foreign
currency in 4 major currencies into rupees at FEDAI noon mean rate on the reporting Friday.
Assets with the Banking System

Assets with banking system include balances with banks in current accounts, balances with
banks and notified financial institutions in other accounts, funds made available to banking
system by way of loans or deposits repayable at call or short notice of a fortnight or less and
loans other than money at call and short notice made available to the Banking System. Any
other amounts due from banking system which cannot be classified under any of the above
items are also to be taken as assets with the banking system.
14
Procedure for calculation of CRR

In order to improve the cash management by banks, as a measure of simplification, a lag of
one fortnight in the maintenance of stipulated CRR by banks has been introduced with effect
from the fortnight beginning 6th November 1999. Thus, all Scheduled Commercial Banks are
required to maintain the prescribed Cash Reserve Ratio (@ 4.50 per cent with effect from the
fortnight beginning June 14, 2003) based on their NDTL as on the last Friday of the second
preceding fortnight.
Maintenance of CRR on daily basis

With a view to providing flexibility to banks in choosing an optimum strategy of holding
reserves depending upon their intra period cash flows, all Scheduled Commercial Banks, are
required to maintain minimum CRR balances upto 70 per cent of the total CRR requirement
on all days of the fortnight with effect from the fortnight beginning December 28, 2002. If
any Scheduled Commercial Bank fails to observe the minimum level of CRR on any day/s
during the relevant fortnight, the bank will not be paid interest to the extent of one fourteenth
of the eligible amount of interest, even if there is no shortfall in the CRR on average basis.
Payment of interest on eligible cash balances maintained by SCBs with RBI

under CRR
i) All Scheduled Commercial Banks are paid interest on all eligible cash balances maintained
with RBI under proviso to Section 42 (1) and Section 42 (1A) of the RBI Act, 1934, at Bank
Rate from the fortnight beginning November 3, 2001. The rate of interest on CRR balances
has been linked to Bank Rate as announced by RBI from time to time
ii) The Scheduled Commercial Banks were paid 100 per cent interest on CRR balances on
receipt of the quarterly interest claim statements in a prescribed proforma. From the month of
April 2003 onwards, Scheduled Commercial Banks were paid interest on CRR balances on
monthly basis on receipt of interest claim statements. With effect from August 2004, interest
on CRR balances would be paid without obtaining interest claim statements from Scheduled
Commercial Banks.
iii) The amount of interest payable at Bank Rate is to be worked out on the eligible portion of
CRR balances for a period of 14 days. In case the CRR balances held with RBI is less than
the amount required to be maintained for any of the fortnights, eligible interest will be paid
15
for that defaulted fortnight only after working out cost of shortfall at the rate of 25 per cent
per annum and subtracting the amount so worked out from interest payable amount.
Penalties
Shortfall, if any, observed in the maintenance of the CRR is reckoned against the eligible
cash balances required to be maintained on the NDTL. The total amount of interest payable
so arrived at is being reduced by an amount calculated at the rate of 25 per cent per annum on
the amount of shortfall. In a situation where shortfall exceeds the level at which no interest
becomes payable on eligible balances held by a bank on net basis i.e. (after interest deduction
on the amount of CRR shortfall) the penal interest under sub-section (3) of Section 42 of the
RBI Act, 1934 is made
Applicable The Scheduled Commercial Banks are required to furnish the particulars, such as
date, amount, percentage, reason for default in maintenance of requisite CRR and also action
taken to avoid recurrence of such default.
Fortnightly return in Form A
Under section 42 (2) of RBI Act, 1934, all Scheduled Commercial Banks are required to
submit to RBI a provisional return in Form 'A' within 7 days from the expiry of the relevant
fortnight. It is used for preparing press communiqu. The final Form 'A' is required to be sent
to RBI within 20 days from expiry of the relevant fortnight. Based on the recommendation of
the Working Group on Money Supply: Analytics and Methodology of Compilation, all
Scheduled Commercial Banks in India are required to submit from the fortnight beginning
October 9, 1998, Memorandum to form 'A' giving details about paid-up capital, reserves, time
deposits comprising of short term and long term, certificates of deposits, NDTL, total CRR
requirement etc., Annexure A to form A return showing all foreign currency liabilities and
assets and Annexure B to form A return giving details about investment in approved
securities, investment in non-approved securities, memo items such as subscription to
shares /debentures / bonds in primary market and subscriptions through private placement.
For reporting in Form 'A' return, banks should convert their overseas foreign currency assets
and
bank credit in India in foreign currency in four major currencies viz., US dollar, GBP,
Japanese Yen and Euro at the FEDAI noon mean rate on reporting Friday. The explanations to
item No's. I, II and III of the return in form 'A' are given below:
Item I - Liabilities to the Banking System in India .
16
Item II - Liabilities to Others in India.

Item III - Assets with the Banking System in India.
In terms of Clause (d) of explanation to Section 42 (1) of RBI Act, 1934, the amount of net
interbank liabilities is to be calculated after reducing assets with banking system from
liabilities to the banking system. Inter bank deposits and borrowings within the banking
system, of maturity period of 15 days and above and up to one year, are totally excluded from
liabilities to the banking systems with effect from the fortnight beginning August 11, 2001.
For the purpose of working out liabilities to be subjected to CRR at rates prescribed from
time to time (at present 4.5 per cent with effect from the fortnight beginning June 14, 2003)
under section 42 (1) of RBI Act 1934, if net interbank liabilities are positive, they should be
deducted from total net demand and time liabilities. However for the purpose of working out
Statutory minimum CRR of 3 per cent on total net demand and time liabilities, net inter-bank
liabilities should be included.
17
HOW CRR & REPO RATES HELP IMPACT LIQUIDITY
The Reserve Bank of India has various tools to control

and maintain liquidity in the market. Two among them are the CRR and Repo rate.
CRR: Cash Reserve Ratio (CRR) is the ratio of deposits banks must maintain with the
Reserve Bank of India. This implies that if a person deposits Rs 1,000 in his account, the
bank can use it to lend others, but it has to deposit a percentage of that amount with the RBI.
Hence, if CRR is 5%, the lender will deposit Rs.50 with the RBI and has Rs.950 left at its
disposal.
Repo Rate:
The repo or repurchase rate is the interest charged by the RBI to banks when they approach it
for short term loans.
The repo rate is linked to the interest rate borrowers pay when they take loans from banks
because the latter always charges interest which is higher than the existing repo rate. Hence,
lower repo rates could induce lenders into lowering the interest rates they charge from
individual borrowers too, thereby making credit more affordable.
CRR determines bank interest rates: If a man had deposited Rs.1,000 in his account when the
CRR was 5%, the bank will have at its disposal Rs.950 after it deposits Rs.50 as CRR. The
bank in turn lends the Rs.950 to a borrower who will eventually repay the bank.
The bank will once again lend this amount (Rs.950) to another borrower after depositing 5%
of the amount (Rs.47.5) to the RBI. In this manner, the money will keep exchanging hands, or
it continues to be created and available for subsequent borrowers. This means that Rs.1,000 is
18
helping generate a far higher amount in the economy in an indirect manner. Therefore, even if
the CRR were to be increased by only 1%, the money generated in the economy would
reduce drastically.
Repo rate and inflation:

When the repo rate is raised, banks are compelled to pay higher interest to the RBI which in
turn prompts them to raise the interest rates on loans they offer to customers. The customers
then are dissuaded in taking credit from banks, leading to a shortage of money in the
economy and less liquidity. So, while on the one hand, inflation is under controlled as there is
less money to spend, growth suffers as companies avoid taking loans at high rates, leading to
a shortfall in production and expansion.
The RBI revises CRR and repo rates in their quarterly and mid-quarter policy reviews to
maintain a balance between growth and inflation. The past two years have been proof of this
practice as the apex bank tried to first tame the monster of inflation with aggressive rate
hikes, and once it saw growth taking a hit, reduced key rates to revive the economy.
19
CASH RESERVE RATIO (CRR) HIKE CAN BE A SOLUTION

TO THE PROBLEM OF RISING INFLATION
The year 2009 saw investor wealth double and in many cases even triple. This was the most
powerful and phenomenal turnaround that any bear market has ever witnessed in the history
of the stock markets. And the best part is that this is not the end of the road for this rally. All
technical and fundamental indicators point towards a more robust growth in the economy and
a more sustained rally in the stock markets in the year 2010.
But a price has to be paid for this vibrant economic growth. Strong growth leads to stronger
demand, which automatically translates into higher prices. And these high prices ultimately
culminate into higher inflation. Inflation appears to be one of the many dark clouds in this
otherwise spotless clear blue sky of stock markets.
SO WHAT REALLY IS INFLATION?

Inflation is the rate at which the cost of living increases and reduces the value of your money.
For example, you can buy 1 kg of rice for Rs 100 as of todays date. Assume that the rate of
inflation is 8%. The same 1 kg rice will cost you Rs 108 in the same period next year. The
purchasing power of your rupee has decreased due to the rise in inflation. Generally growth is
accompanied with rising inflation.
Today, the common man is at his wits end while planning his monthly budget. The prices of
all essential commodities like milk, pulses, vegetables, fruits, etc are soaring to dizzy heights.
Rising inflation can have deleterious effects on the growth, stability and economy of a
country. Hence, it is the responsibility of institutions such as the Reserve Bank of India to
monitor inflation levels closely and take adequate steps to keep it under check when it
threatens to spiral out of control. The RBI has many tools at its disposal to rein in rising
inflation. And the most important and effective tool is the Cash Reserve Ratio or as we more
popularly know it, the CRR.
20
CASH RESERVE RATIO (CRR)

All commercial banks are required to keep a certain amount of their deposits as cash with the
Reserve Bank of India. This percentage is referred to as the Cash Reserve Ratio.If and when
the RBI feels that the inflation is rising and getting into uncomfortable territory, one of the
first things that it does is hike the CRR rate. A CRR hike acts as potent anti-venom against
rising inflation.
How Does A CRR Hike Help In Lowering Inflation?

Whenever the RBI hikes the CRR rate, a lot of excess liquidity is sucked out of the markets.
Banks have lesser cash available with them to deploy as loans. Consequently, to maintain
their profit margins, they have to increase the lending rates at which they disburse loans.
As loan rates go up, consumers tend to borrow less and eventually spend less. Thus the
demand for goods and services goes down. All inflated prices start coming down due to the
decrease in demand. And as prices start moving downwards, inflation starts coming down.
But as is the case with every antibiotic, CRR also comes with its own share of side effects.
Let us understand the effect that CRR has on various sectors in the industry.
Effect Of CRR Hike On Rate-sensitive Stocks

Rate sensitive stocks bear the direct and brutal brunt of a CRR hike. Banking, real estate and
auto sectors are the major sectors whose stocks are mostly affected when CRR rates are
increased.
Banking
Increased interest rates lead to lower credit growth and further bring about the overall
profitability. Thus, banking stocks might face selling pressure.
21
Real estate
CRR hike will reduce liquidity in the markets. Consumers will be less inclined to borrow
home loans at higher interest rates resulting in a fall in demand. Also construction companies
will have to borrow at higher rates thus increasing their overheads.
Auto
The same applies to autos. The demand for automobiles will decrease due to increased
lending rates and the cost to company will rise sharply due to increased borrowing rates.
Hence, auto stocks can also see a downturn. Overall almost all sectors will be affected in
some way or the other with a generalized slowdown in industrial growth. Since liquidity is
strapped to an extent, consumer demand is low owing to increased interest rates. Companies
have to borrow at higher interest rates adding to their cost. Hence, the stock markets on the
whole can witness some selling pressure.
Debt markets
CRR hike can also increase paucity of funds in the debt market. But one of the negatives of
this move is that the yields of bonds increases as bond prices decrease since banks sell bonds
to create liquidity. As the prices of bonds decrease, the returns on debt mutual funds will also
plummet.
Effect On Companies
The cost of funds will go up for small and medium-sized companies that have no access to
foreign funds.
22
CASH RESERVE RATIO MUST BE REDUCED ONCE THE

WAR AGAINST INFLATION IS WON
State Bank of India ( SBI) chairman Pratip Chaudhuri has hit the nail on the head. The
(interest-free) cash reserve ratio (CRR) that banks are compelled to keep with the Reserve
Bank of India (RBI) is a non-performing asset (NPA). For now, the suggestion to scrap it
might be out of tune with the RBI's effort to tighten liquidity. But there is no mistaking that
this is a desirable long-term policy goal.
The CRR is an impost on banks; which is why the Narasimham Committee on financial
sector reform in the early 1990s had recommended that CRR be reduced to 3% and the
statutory liquidity ratio (SLR), to 25%. We have made progress on the latter; indeed SLR is
now 24%. But on CRR, the RBI has wavered. After a phase of steady reduction, it has
reversed direction, and CRR has inched up to twice the level suggested by the Narasimham
Committee. The reason is that CRR is a handy, if somewhat gross, tool to mop up liquidity.
Unlike a hike in policy rates whose impact can vary from sector to sector and, in addition,
depends on the efficacy of the monetary transmission mechanism, a hike in CRR hits all
sectors indiscriminately. CRR is noticeably absent from the armoury of mature central banks,
even though the impact on interest rates is the same (a hike in CRR reduces availability of
funds with the banking system and, hence, pushes up interest rates).
In the Indian context, however, the RBI is constrained in its choices for two reasons. One, it
needs to use all the tools at its command to tighten liquidity in a scenario where inflationary
expectations seem deeply entrenched. Two, the monetary transmission mechanism leaves
much to be desired. So, the central bank is at times forced to use a sledgehammer where a
chisel might have sufficed.
The RBI may not have much of an option now. But once inflation trends down, the central
bank must get back on track and lower CRR, ideally to no more than 3%. The case for
prudential requirements has, undoubtedly, received a shot in the arm following the 2008
financial crisis. But excessive caution can be as bad, if not worse, than none. Banking is
about taking risks
23
CASH RESERVE RATIO EFFECT ON INTEREST RATE?
Cash reserve ratio (CRR) like the name suggests is the ratio of cash that bank needs to keep
reserved with the central bank. CRR can also be defined as the proportion of deposits that
banks need keep with the Reserve Bank of India (RBI) in cash fortnightly. Presently the CRR
is 6% that is, for every Rs100 deposited in the bank; bank will need to deposit Rs6 with RBI.
Or in other words, banks cant lend or use this Rs6 for any purpose. This does not mean that
the remaining Rs94 can be used by the banks for lending as other than CRR they have to
meet other predetermined proportion of the deposits as directed by RBI. Also banks dont
earn any interest on the funds deposited (as CRR) with RBI.
The main purpose of CRR is to protect the risk of the banks depositors to an extent and to
ensure that a bank maintains some funds in liquid form.
The other purpose it serves is, it helps to adjust liquidity in the system, the supply of money
circulating in the economy. When there is excess money supply in the market, RBI will
increase the CRR to drain out the excess. Inversely if the economy is falling short of liquidity,
then RBI will decrease the CRR to release more funds in the market. This is thus one of the
instruments that the central bank uses to control inflation.
When the CRR is increased, the amount of funds that a bank can lend decreases. Banks then
try to encourage more deposits by increasing the interest rates. Rising interest rate usually
discourage loan seekers as a higher interest rate means that the cost of money has increased.
CRR is only one of the factors that influence interest rates. Change in CRR has a major effect
on the bank though it may not have a major effect on investors unless other factors also
influence interest rates
24
RBI CUTS CRR: HOW WILL IT IMPACT LENDING RATES?

As the Reserve Bank of India's (RBI) decision to cut cash reserve ratio (CRR) by 25 basis
points (bps) will inject Rs 17000 crore in the system, there are whispers that bankers may
reduce lending rates further.
However, RK Bakshi, ED of Bank of Baroda feels that lending rates are unlikely to be
changed. It at all lending rates are reduced, he points out, it will be out of competition and not
because of the CRR cut.
"CRR cut is to take care of the busy season ahead and the tax payments and to see that the
liquidity is enough to see that the payments and all markets continue to function smoothly. If
there is a credit demand that gets taken care of. But right now, any rate cut will be driven only
by considerations of competing and being able to deploy the excess liquidity that we have
rather than anything," he said in an interview to CNBC-TV18.
Bakshi adds that CRR cut won't really impact the big flow of non-performing assets (NPAs)
but only home loans of the venerable people or some SME loans they will be definitely
benefitted to some extent.
He explains that going by market dynamics, the rates on deposits have tended to go lower and
other players will follow suit which would definitely open up a scope for moderating the rates
of interest.
Guidance: Will there be further easing?

Sonal Varma, Nomura India believes that inflation is going to spike above 8% very soon in
the coming months and the RBI's projection of 7% by March clearly has upside risk. She,
however, believes that there is likely to be an overall growth of around 5.8% this fiscal year
with growth almost flat in the September quarter.
Varma feels that RBI seems to be predisposed towards easing. The monetary conditions
index in India has already been going towards the accommodative zone, also helped by a
weaker currency till about recently. I think all those actions in any case will reinforce RBIs
concerns on growth, she elaborates.
Sajjid Chinoy, JPMorgan agrees that there will be opportunistic easing in the next few
months. "If inflation, crude prices come off and the currency appreciates then you could get
the odd rate cut or two. But to expect dramatic easing from this moment on will just not be
25
permitted I think by the kind of inflation trajectory that we expect going forward," he
reiterates.
Chinoy is looking at about 5.6% growth for this year which implicitly assumes some pick up
in the second half. However, there are concerns around inflation trajectory to be significantly
higher because of electricity price increase, diesel price hike and the fact that global
commodity prices will be higher than we initially thought. According to him, inflation is
likely to go above 8-8.5% over the next few months.
Meanwhile, Anant Narayan, Standard Chartered Bank also believes that RBI will sort of take
on the mantle of trying to address the growth perspective as well and hopefully the macro
economic situation globally.
"I think the guidance given by the RBI which looks at growth is focusing on the right part. To
me growth has a direct bearing on inflation in terms of improving supply. It has a direct
bearing on fiscal deficit, because the only way India generally controls fiscal deficit is by
increasing revenues which requires growth and it has a direct bearing on FX itself, because
balance of payments requires that India positive growth story tor remain, so that money
comes in into the system," Narayan emphasises.
Bond market
Looking at a bond yield range of 8.05-8.25%, Anant Narayan of Standard Chartered Bank is
optimistic that rerating of overall risk in India is still some distance away. Stressing that a
mere Rs 17,000 crore is not going to fix the liquidity crunch which stands at Rs 40,000 crore.
"Specific to government bonds, every time we have liquidity infusion through CRR cuts, in
the minds of the market players it takes away the need for further OMOs to that extent.
26
IMPACT OF CRR AS A MONETARY TOOL IN INDIAN

ECONOMY
Indian economy is controlled by RBI, from time to time RBI issues new policies, alters the
existing ones to suit the need of the economy. RBI uses monetary measures to reduce the
negative impact going on in the world economy. Monetary policy is primarily associated with
interest rate and credit. For many centuries there were only two forms of monetary policy: (I)
Decisions
about
coinage;
(ii)
Decisions
to
print
paper
to
create
credit.
CRR is a major tool used by the RBI to control money supply in the economy. Cash reserve
Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to
increase the percent of this, the available amount with the banks comes down. RBI is using
this method (increase of CRR rate), to drain out the excessive money from the banks.CRR
impact interest rates, when RBI increases CRR it means banks have to keep additional funds
with the RBI, if banks keep more with RBI they can offer less at high rate of interest to
customers. Hence RBI increases CRR when they want to take away the excess money from
markets and vise-versa. Liquidity in an economy also gets impacted with a change in CRR,
when RBI reduces CRR from time to time they plan to inject money into the system.
Along with CRR RBI also uses repo rate, reverse repo, bank rate as instruments of monetary
policy.CRR also impacts individual as it impacts the stock market, borrower.
Hence CRR is a major qualitative monetary tool with which the RBI plays upon to control the
situation in the economy.
27
CASH RESERVE RATIO (CRR): IMPLICATIONS AND

CONTROVERSIES
The term 'Cash Reserve Ratio', is a ratio of reserve maintained by Scheduled/Commercial
banks with Reserve Bank of India (RBI, The Central Bank) as a percentage of Demand and
Time Liabilities. At present, the Cash Reserve Ratio required to be maintained by the banks
is 4% of the time and demand Liabilities of a bank. Cash Reserve Ratio was reduced from
6% in December 2011.
Banking by definition means being in the business of borrowing and lending money, and
making a margin between the rates of borrowing and lending to meet their administrative
costs and profits. The major financial resources of a bank are mainly the deposits received
from the public.
CRR or Cash Reserve Ratio is used as a tool, for controlling the liquidity, inflation and
growth by RBI. CRR is an essential tool in the hands of Reserve Bank of India to monitor the
Indian economic situation and apply appropriate levers by increasing or decreasing the CRR
for controlling the economic situation as desired by the Central Bank in the larger welfare of
the Country.
A cut (decrease) in CRR rate denotes release of money from the reserves by RBI to the
Banks. Hence a reduction in CRR leads to availability of more money in the economy.
Increased supply of money increases the availability of the foremost factor of production. The
principle of demand and supply, under circumstances of decreased CRR ensures that Capital/
Finance become cheaper leading to deployment of more money for higher industrial growth
and production.
A hike (increase) in CRR rate denotes that banks will have to increase their reserves (CRR)
with RBI, and hence will have to fund the additional CRR from their own funds. This means
that there will be a reduction in funds availability with banks and hence increase in interest
rates on lending. The natural principles of demand and supply control the forces of the
economy. An increase in CRR reduces money availability in the economy and consequently
growth.
28
To Illustrate:
If a depositor deposits Rs.1000/- in bank, it increases the deposit by Rs.1000/- and if the CRR
is currently 9%, banks will have to hold Rs.90/- and will be able to use only Rs.910/- for its
lending and borrowing activities. If suppose the CRR rate was reduced to 7%, then banks will
have to keep Rs.70/- as Cash reserve (CRR) with RBI and hence will be having Rs.930/- for
its banking business activities. Hence @7% the liquidity in the economy will be higher than
at 9% as the availability of money is Rs.930/- against Rs.910/- respectively.
RBI controls liquidity, growth, inflation and other economic parameters of India through the
application of appropriate CRR rate. It will be most appropriate to note that the money from
public raised as deposits etc., are the funds which are kept with RBI as CRR. The Banks will
have to pay interest on such deposits but will not be able to earn any money on such funds
which are kept idle with RBI as CRR.
Reserve Bank of India does not pay any interest on the money; they receive as CRR from the
Commercial/Scheduled Banks. Considering prudent Management Principles, to keep scarce
resource of production namely Capital as reserves without any economic activity is not
considered good. However, the larger principles of economy of balancing and directing the
course of economic activity take priority over the prudent Management policies in the case of
Cash Reserve Ratio.
From the individual banks perspective, it is mandatory requirement for the bank to abide by
and keep their licenses going. Hence, they will have to maintain the Reserve.
CONTRARY VIEWS OF PIONEERS OF TWO BANKS ON CRR:

In recent article in The Times of India, it was revealed that SBI Chairman, Mr. Pratip
Chowdhary has asked for abolition of CRR or at least payment of some interest on the
amount of CRR blocked with RBI without being put into effective use. His argument is based
on the facts that banks are basically in the business of borrowing and lending. To have such
amounts of money, locked up in the chest with RBI without being productively used in the
business of banking is not a good managerial practice of using resources to its optimum
productivity.
ICICI Bank Chairman Mr. K.V. Kamath opines that CRR is part of Indian Monetary Policy
and it cannot be done away with. RBI in its wisdom uses the various instruments of monetary
29
policy for monitoring the economy of the country. Hence CRR cannot be done away with.
He totally differs with the views of Mr. Pratip Chowdhry.
VIEWS OF RBI ON CRR:

On the Contrary replying to the request of the Chairman of SBI, the RBI Deputy Governor
Mr. Chakrabarty tells SBI that CRR is a legal mandatory requirement to be followed by
various scheduled/Commercial banks. It is a Cost on the banks and that they will have to
manage it, from other profits of the banks. He also states that SBI has to work within the legal
frameworks as provided by the Central bank.
VIEWS OF FINANCE MINISTRY ON THE ISSUE:

Finance Ministry has recently taken over the Financial Statements of Reserve Bank of India
to review its claims of being unable to pay interest on the CRR. Finance Ministry wants RBI
to pay 7% interest on CRR deposits with various Commercial/Scheduled banks.
30
CONCLUSION:
CRR is definitely an essential tool for controlling the various parameters of the economy.
However at what cost the essential tool is to be maintained? CRR is an artificial tool to create
demand or supply of most essential factor of production that is CAPITAL. While hoarding
up of commodities to create artificial scarcity and jacking up prices is prohibited by law for a
trader etc., it is being followed as principle for economic parameters control by Central Bank
as part of monetary policy in the guise of CRR. Considering the contrary stands of RBI and
Finance Ministry on the requirement of paying interest on CRR deposits, it would be worth
watching the future course of direction of the issue contemplated in this article. The reserve
requirement (or cash reserve ratio) is a central bank regulation employed by most, but not all,
of the world's central banks, that sets the minimum fraction of customer deposits and notes
that each commercial bank must hold as reserves (rather than lend out). These required
reserves are normally in the form of cash stored physically in a bank vault (vault cash) or
deposits made with a central bank. The required reserve ratio is sometimes used as a tool in
monetary policy, influencing the country's borrowing and interest rates by changing the
amount of funds available for banks to make loans with. Western central banks rarely alter the
reserve requirements because it would cause immediate liquidity problems for banks with
low excess reserves; they generally prefer to use open market operations (buying and selling
government-issued bonds) to implement their monetary policy. The People's Bank of China
uses changes in reserve requirements as an inflation-fighting tool, and raised the reserve
requirement ten times in 2007 and eleven times since the beginning of 2010.
31
WIBLIOGRAPHY
www.google.com
www.wikipidia.com
www.scribe.com
32
33
34
35
36
37
38
39
40

Cash Reserve Ratio

Uploaded by

Document Information

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Cash Reserve Ratio

Uploaded by

Copyright:

Available Formats

CASH RESERVE RATIO [CRR]

INTRODUCTION OF CASH RESERVE RATIO