CRR :
CRR is Cash Reserve Ratio. It refers
to keeping a portion of net demand and time liabilities (NDTL) of banks with
the central banks. Central bank fixes this percentage of NDTL. Central bank can
change this percentage as a monetary measure to control the availability of
funds in the economy i.e. to inject liquidity or to suck liquidity. But doesn’t
pay any interest on such funds held with it.
SLR :
SLR is Statutory Liquidity Ratio.
It’s the percentage of Demand and Time Maturities that banks need to have in
any or combination of the following forms:
- i) Cash
- ii) Gold valued at a price not exceeding the current market price,
No comments:
Post a Comment