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Discussion

What do we call the funds that the banks keep with RBI as a portion of their Net Demand and Time Liabilities?

  • A.Statutory Liquidity Ratio
  • B.Cash Reserve Ratio
  • C.Bank Rate
  • D.Reverse Repo Rate

Answer: B

The Cash Reserve Ratio is the amount of funds that the banks are bound to keep with Reserve bank of India as a portion of their Net Demand and Time Liabilities (NDTL).

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